(Reuters) — Nvidia’s shares rallied around 6% to hit a record high on Tuesday, leaving the AI chipmaker’s stock market value about $100 billion away from overtaking Apple in a major reshuffle of Wall street’s biggest players.
Last trading at $1,128, Nvidia’s market capitalization reached $2.8 trillion, compared to a market value of $2.9 trillion for Apple, which is Wall Street’s second-most valuable company after Microsoft.
Its stock surged as much as 8% to $1,149.39 during the session, an intra-day record high. Apple’s stock was down 0.2% in afternoon trading.
Nvidia’s shares have surged nearly 13% since it forecast second-quarter revenue above Wall Street expectations last week and announced a stock split, which excited investors as they continue to bet on the AI poster child.
“The market has been struggling to keep up with the company’s ever improving growth trajectory. At a mid-thirties forward earnings multiple, this still doesn’t feel like bubble territory,” said Derren Nathan, head of equity analysis at Hargreaves Lansdown.
Nvidia recently traded at 36 times its forward profit estimates, compared with 38 for Advanced Micro Devices and 21 for Intel, according to LSEG data.
The company’s shares have more than doubled so far this year after more than tripling last year.