Nvidia overtakes Apple as world's most valuable company
Nvidia has dethroned Apple as the world’s most valuable company on Friday after a record-setting rally in the stock market, driven by the high demand for its specialized artificial intelligence chips. According to LSEG data, Nvidia’s stock market value briefly surpassed Apple's, with Nvidia touching $3.53 trillion and Apple standing at $3.52 trillion.
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Market Performance
Nvidia ended the day with a 0.8% increase, reaching a market value of $3.47 trillion. Meanwhile, Apple experienced a 0.4% rise, valuing the tech giant at $3.52 trillion. Earlier in June, Nvidia briefly held the title of the world’s most valuable company before being surpassed by Microsoft and Apple.
Microsoft’s market value currently stands at $3.18 trillion, with its stock also showing an increase of 0.8%. Nvidia, known for its processors used in AI computing, has emerged as a key player in the tech industry alongside Microsoft, Alphabet, Meta Platforms, and other major companies.
Since the 1990s, Nvidia has been a prominent designer of processors for videogames. The company's stock has seen an 18% rise in October, especially after OpenAI announced a funding round of $6.6 billion. Semiconductors stocks, including Nvidia, received a boost after Western Digital reported better-than-expected quarterly profits, indicating strong demand for data center services.
Stock Performance and Industry Trends
Russ Mould, an investment director at AJ Bell, noted, “More companies are now embracing artificial intelligence in their everyday tasks and demand remains strong for Nvidia chips." This growing trend indicates a positive outlook for Nvidia as companies continue to invest in AI capabilities.
Nvidia's substantial gains and market dominance reflect the growing importance of AI in various industries. As Nvidia continues to innovate and expand its reach in the tech sector, its trajectory remains promising. The competition among tech giants for market leadership underscores the dynamic nature of the industry and the ever-evolving landscape of technological advancements.
Future Outlook
Analysts project Nvidia to achieve nearly 82% revenue growth to $32.9 billion, outperforming Apple's expected revenue growth of 5.55% to $94.5 billion. The influence of Nvidia, Apple, and Microsoft on the technology sector and the broader U.S. stock market is significant, accounting for about a fifth of the S&P 500 index's weight.
Microsoft’s market value currently stands at $3.18 trillion, with its stock also showing an increase of 0.8%. Nvidia, known for its processors used in AI computing, has emerged as a key player in the tech industry alongside Microsoft, Alphabet, Meta Platforms, and other major companies.
