Nvidia’s trajectory could see it take ‘most valuable company’ crown from Apple
Microsoft is down, but will Nvidia be able to overtake Apple?
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Shares of Nvidia closed at a record high on Monday, putting the heavyweight AI chipmaker on track to surpass Apple and become the most valuable company.
In June, Nvidia briefly became the world’s most valuable company before being overtaken by Microsoft and Apple. Since then, the market capitalizations of the tech trio have been closely contested for several months, with Nvidia finally surpassing Microsoft again and setting its sights on the top spot. The recent gains boosted Nvidia’s market value to a whopping $3.39 trillion, placing it just below Apple’s $3.52 trillion valuation and above Microsoft’s $3.12 trillion.
Nvidia looks set to become the world’s most valuable company
Nvidia’s stocks rose 2.4% to close at $138.07, surpassing its previous high of $135.58 set on June 18. The shares have increased by nearly 180% this year and have grown more than ninefold since the start of 2023. But what is the cause of this sudden growth?
Nvidia is widely known as the company providing the pieces to complete this AI puzzle. Its early entry into the AI boom has made the company a centerpiece in the ongoing AI race. Investors, major tech companies, and even market cap rivals like Google, Meta, Microsoft, and Amazon are betting on strong demand for Nvidia’s GPUs, which are used to create and deploy advanced AI models that bring applications like ChatGPT to life.
Out of the billions of dollars that companies are investing in their AI initiatives, a significant amount is going to Nvidia, which controls 95% of the market for AI training and inference chips. Nvidia has been the biggest beneficiary of the generative AI boom, which began with the public preview launch of ChatGPT in November 2022, sparking widespread interest and adoption of the technology. In just 12 months, Nvidia has more than doubled its quarterly revenue, reaching a total of $30 billion.
Will Nvidia be able to dethrone Apple from the top spot?
Despite a massive boost in revenue, Nvidia is still far behind Apple, which reported a recent quarterly revenue of $85.8 billion. However, this could change in Nvidia’s favor, as the company recently stated that the demand for its upcoming next-gen AI GPU, codenamed Blackwell, is incredibly high. Nvidia anticipates generating billions of dollars from this new product in the fourth quarter to future-proof its infrastructure, which analysts predict could be near $33 billion this quarter, marking an 82% year-over-year increase if accurate. With a market cap of $3.4 trillion, Nvidia is currently the second-most valuable publicly traded U.S. company.
