NVIDIA Surpasses Apple to Become the World’s Most Valuable Company Amid Rising Demand for AI and Supercomputing Chips
NVIDIA has overtaken Apple as the world’s most valuable company, following a record surge in its stock at Friday’s close, driven by growing demand for its AI and supercomputing chips.
According to data from the London Stock Exchange Group, NVIDIA’s market value briefly reached $3.53 trillion, surpassing Apple’s $3.52 trillion. NVIDIA had previously topped the list of most valuable companies in June but was later outpaced by Microsoft and Apple. The three tech giants have maintained close market valuations in recent months, with Microsoft currently valued at $3.20 trillion.
NVIDIA’s stock has surged by 18% since the beginning of October, bolstered by a series of gains after OpenAI, the developer of ChatGPT, announced a $6.6 billion funding round.
NVIDIA and other semiconductor stocks also benefited from Western Digital’s report of higher-than-expected quarterly earnings, boosting optimism for data center demand. Ross Mold, investment director at AJ Bell, noted that increasing AI adoption across sectors is driving demand for NVIDIA’s chips, with favorable conditions expected to continue barring a major economic downturn in the U.S.
NVIDIA’s stock reached an all-time high on Tuesday, further fueled by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reporting a 54% rise in quarterly earnings due to heightened AI chip demand.
Conversely, Apple is facing a decline in smartphone demand, with iPhone sales in China down 0.3% in the third quarter, while competitor Huawei saw a 42% increase in sales. As Apple prepares to announce its quarterly results next Thursday, analysts project a 5.55% revenue increase, reaching $94.5 billion. NVIDIA’s revenue, however, is expected to grow by 82%, totaling $32.9 billion.
NVIDIA, Apple, and Microsoft collectively make up about one-fifth of the S&P 500 index’s weight, significantly impacting the U.S. stock market and the technology sector overall.
