On Tuesday, Nvidia Corporation surpassed Apple Inc. to become the world’s most valuable company, with a record-breaking market capitalisation of $3.43 trillion.
The chipmaker’s rise is largely attributed to the increasing global demand for artificial intelligence (AI) technologies, driving its shares to grow an extraordinary 850% since late 2022.
By the close of the trading day, Nvidia’s shares rose by 2.9%, strengthening its lead over Apple, which closed with a market valuation of $3.38 trillion.
Nvidia previously surpassed Apple’s valuation in June, albeit briefly, marking this achievement as part of a competitive dynamic between the two tech giants.
As of now, Nvidia’s standing reiterates its role as a core enabler in the AI infrastructure, which analysts and investors expect will continue to experience a robust growth cycle.
In recent quarters, Nvidia’s influence has become a defining element in the performance of the S&P 500, where it now constitutes 7% of the index’s weight. Its surge has been key in driving approximately a quarter of the index’s 21% gain this year.
Industry observers note that Nvidia’s growth aligns with the AI investment trend, with leading tech firms like Microsoft, Amazon, and Alphabet, all heavily reliant on Nvidia’s chips to power their AI advancements and cloud infrastructure.
These firms are among Nvidia’s biggest customers, emphasising the interconnectedness of major tech companies in pushing AI forward.
Economic challenges for Apple have also played a part in the market dynamics. Apple’s recent earnings report flagged slowing revenue growth and struggles in the Chinese market, which analysts believe have softened its overall valuation.
Nvidia, in contrast, has managed to soothe investor concerns related to its Blackwell chip delays and sustain confidence in its long-term prospects.
Wall Street analysts forecast a continued upward trend for Nvidia’s financial performance, with revenue expected to more than double this fiscal year and increase by a further 44% in the following period.
With the booming demand for AI, recent developments highlight the expansive investment into the technology. Taiwan Semiconductor Manufacturing Co., one of Nvidia’s key partners, reported strong sales aligned with AI demand, and OpenAI recently secured a $157 billion valuation.
Nvidia remains a solid supplier for AI-focused companies like OpenAI, and this reliance has put the chipmaker at the forefront of the AI boom, with sustained support from industry giants like Meta, Amazon, and Microsoft.
Even with Apple’s recent introduction of a small-scale generative AI system, Nvidia’s GPUs continue to power some of the world’s most advanced AI models.
Although OpenAI and other companies have begun exploring alternative suppliers, Nvidia’s technological advancements and market growth in the AI sector remain unmatched.
