On Friday, Nvidia momentarily eclipsed Apple as the world’s most valuable company, reaching a market value of $3.53 trillion due to soaring demand for its AI-focused chips.
Although Nvidia ended the day with a $3.47 trillion valuation, just shy of Apple’s $3.52 trillion, the brief takeover highlights Nvidia’s growing dominance in the AI chip market, driven by increased corporate investment in artificial intelligence.
Nvidia’s stock surged nearly 18% in October, buoyed by OpenAI’s recent $6.6 billion funding round and an uptick in demand for AI applications across industries.
The company’s position as a leading supplier of AI processors has made it a critical player in the tech race among giants like Microsoft, Google, and Meta, all vying for AI supremacy.
Russ Mould, investment director at AJ Bell, emphasised that Nvidia’s strategic focus on AI has positioned it advantageously, adding that continued investment in AI technology could sustain Nvidia’s momentum.
This optimism was further supported by strong quarterly profits from Western Digital and TSMC, signalling sustained demand for AI-related data centre components.
Meanwhile, Apple’s recent performance contrasts with Nvidia’s rise; iPhone sales dipped in China as competition with Huawei intensified.
Apple’s quarterly results expected this Thursday could see a revenue increase of 5.5% year-over-year, modest compared to Nvidia’s anticipated 82% growth.
The competition between Nvidia, Apple, and Microsoft underscores the tech sector’s influence on the broader US stock market, with the three firms contributing nearly a fifth of the S&P 500’s value.
