United States chipmaker Nvidia has demonstrated extraordinary market performance, outpacing Apple's stock price by more than 25-fold since the beginning of 2024. This remarkable achievement comes as Nvidia prepares for its highly anticipated 10-to-1 stock split, set to start trading on June 10.

Since the start of 2024, Nvidia shares have surged by over 150%, compared to Apple's modest 6% year-to-date (YTD) increase, according to Nasdaq data. Nvidia's short-term performance is equally impressive, with its stock price rising 34% in the past month alone, while Apple’s shares have seen a modest 7% gain.

Nvidia’s position as the world’s largest chip manufacturer has been bolstered by the soaring demand for semiconductor chips, driven primarily by advancements in artificial intelligence (AI) algorithms. The company's valuation has soared in response to this demand, reflecting its critical role in the tech industry.

However, Nvidia shares experienced a slight decline in pre-market trading on Monday, falling 0.25% to $120.89 at 11:40 am UTC. This dip occurred ahead of the stock split, which is anticipated to introduce significant price volatility despite increasing retail interest. Nvidia's shares have nonetheless risen over 10% in the past five days, highlighting the stock's overall positive momentum.

The forthcoming stock split will make Nvidia the fifth "Magnificent Seven" stock to undergo such a split since 2022, joining the ranks of tech giants like Apple, Tesla, Amazon, and Alphabet. While stock splits are generally perceived as a sign of confidence in a company’s future performance, they can also lead to heightened volatility. Adam Coons, Chief Investment Officer of Winthrop Capital, cautioned that increased retail participation could lead to more rapid and emotional trading decisions, diluting the influence of institutional investors and potentially exacerbating price fluctuations.

Nvidia's recent market performance has been nothing short of stellar. Last week, the company achieved a $3 trillion market capitalization, driven by the robust demand for its semiconductor chips. On June 5, Nvidia briefly surpassed Apple as the world’s second-most valuable firm, reaching a new all-time high valuation of $3.01 trillion before settling back to $2.97 trillion.

Gurps Rai, CEO of droppGroup, described Nvidia’s $3 trillion milestone as a "seismic event" for both the company and the AI industry. He predicted that Nvidia's exponential growth would continue, potentially allowing it to overtake Apple as AI-centric companies dominate the market. Rai compared the current shift to the tech takeover of the Fortune 500, where modern technology firms replaced industrial giants.

Nvidia’s graphical processing unit (GPU) chips are essential for developing AI applications, making them the preferred choice for leading AI development firms like OpenAI, Google, and Microsoft. The company's dominance in this sector has propelled its stock price and market valuation, reflecting the growing importance of AI in the tech industry.

Ilan Rakhmanov, founder of ChainGPT Foundation, emphasized that Nvidia’s GPUs enable the rapid processing of massive datasets, a fundamental requirement for AI-driven companies. He projected that Nvidia's stock would continue its exponential growth as the adoption of AI technologies accelerates.

As Nvidia gears up for its stock split, the company’s exceptional market performance and strategic positioning in the AI industry signal continued growth and influence, setting the stage for its ongoing success in the tech sector.