Nvidia briefly overtakes Apple as the world’s most valuable company, driven by soaring demand for its AI chips and growth.
On October 25, marking a notable shift in market dominance among tech giants, Nvidia briefly surpassed Apple to become the world’s most valuable company. Valuing the company at $3.53 trillion, Nvidia’s stock cascaded to a record high, just edging out Apple, which reached $3.52 trillion. Driven by an unprecedented demand for its advanced artificial intelligence chips, this attainment highlights Nvidia’s growing importance in the AI sector.
Nvidia has capitalized on the AI boom, becoming a key supplier for AI applications across various sectors, from cloud computing to automotive technology, and is historically known for its processors in the gaming industry. With its stock ascending 18% in October alone, largely fueled by companies like OpenAI, the rise in demand for generative AI has propelled Nvidia’s growth.
TSMC, a major chip producer, reported a significant profit rise earlier this month, ascribing much of it to high demand for AI-capable chips, further boosting Nvidia’s stock.
iPhone sales saw a slight fall while competitor Huawei experienced a sharp increase, Apple, meanwhile, faces challenges in its core smartphone market, particularly in China. Nvidia is expected to report a nearly 82% year-over-year rise, as Apple prepares to release its latest quarterly earnings, analysts project a modest revenue growth of 5.55%, reflecting the divergence in their contemporary growth trajectories.
Demonstrating the ongoing competition for supremacy in technology, the market capitalizations of Apple, Nvidia, and other leading tech firms have been closely matched together with Microsoft; analysts credit Nvidia’s massive gains this year—up nearly 190%—to sustaining investor confidence in AI, which has driven up both stock prices and trading volume.
Nvidia’s rapid ascent stripes its pivotal role in AI development, which is a sector that continues to drive technology markets globally.
Source: (Reuters)