Nvidia has unseated Apple as the world’s most valuable company, driven by record-breaking demand for its advanced artificial intelligence chips.
Nvidia’s valuation temporarily reached $3.53 trillion, narrowly surpassing Apple’s $3.52 trillion, before closing the day at $3.47 trillion, while Apple ended at $3.52 trillion.
The Silicon Valley-based chip giant has become a central company in the AI sector, with Nvidia’s specialised chips proving essential for AI-driven applications across sectors.
The company’s stock has surged, boosted by a recent $6.6 billion investment in OpenAI, the developer of AI models like ChatGPT, which rely heavily on Nvidia’s GPUs for training.
Nvidia’s October rally has increased its stock by 18%, further bolstered by favourable earnings from other tech firms like Western Digital, which saw a boost from strong data centre demand.
Chipmaker Nvidia Surges Past Amazon, Alphabet to Become Fourth Most Valuable Company
While Apple has maintained a steady climb with a 0.4% rise in its share price, Nvidia’s rise comes from the wider AI adoption.
AI technology is penetrating various industries and Nvidia’s chips are increasingly in demand, placing the company at the top of AI infrastructure. A promising earnings season, alongside expectations of potential interest rate cuts from the Federal Reserve, has pushed the S&P 500 index to all-time highs, with Nvidia, Apple, and Microsoft comprising nearly 20% of the index’s weight.
Tuesday saw Nvidia’s shares reach record highs, driven by TSMC’s strong quarterly results and a forecast-beating 54% profit increase, largely attributed to the soaring need for AI chips. Investors and analysts are now waiting to see Nvidia’s third-quarter performance, with the company projecting revenue at around $32.5 billion.
Nvidia CEO Jensen Huang recently pointed out the high demand for the company’s upcoming Blackwell chips, though supply chain challenges have delayed production.
With a 190% rise, Nvidia’s increase in its share value this year, Nvidia has drawn interest from options traders. However, some investors are cautious about whether the AI-driven revenue surge is sustainable.
Founded in 1993, Nvidia initially made its mark in graphics processing for video games before evolving into a leader in accelerated computing.
With Apple preparing to release its quarterly earnings with a projected 5.55% revenue growth to $94.5 billion, Nvidia’s 82% revenue growth expectation reiterates the market impact of the AI boom.
In contrast, Apple has faced tepid iPhone demand, with sales declining by 0.3% in China, while Huawei posted a 42% surge in sales.
