Nvidia has surged past Apple to become the world’s most valuable publicly traded company, capitalizing on the global surge in artificial intelligence demand. Nvidia’s stock price recently rose by nearly 3% to $139.93, propelling its market capitalization to an impressive $3.43 trillion — a step ahead of Apple’s $3.38 trillion. The AI powerhouse has captured Wall Street’s attention, fueled by investors’ confidence in Nvidia’s market dominance in AI-related technologies and infrastructure.
Read More: Apple finally releases AI tools for iPhone users
The rapid climb in Nvidia’s market value this year marks an extraordinary 190% year-to-date rise in its stock price. Since the end of 2022, when ChatGPT popularized generative AI, Nvidia’s share price has skyrocketed more than 850%, underscoring the massive AI frenzy that has driven the company’s success.
AI-Centered Growth Powers Nvidia’s Rise
Nvidia’s chips and GPUs (graphics processing units) are central to AI technologies, powering widely used models like OpenAI’s ChatGPT and Google’s Gemini. Major tech companies, including Microsoft, Amazon, and Google, have invested billions into Nvidia’s AI solutions, recognizing these chips as crucial to training and deploying advanced AI models. Nvidia’s GPU technology has become so integral to AI that UBS, in a January investor note, referred to ChatGPT’s release as the “iPhone moment” of the AI industry. UBS forecasts AI revenues to grow by 72% annually, reaching $420 billion by 2027, driven by rising demand for AI applications, cloud-based GPUs, and edge computing.
Unseating Apple and Entering the Dow Jones
This isn’t Nvidia’s first time overtaking Apple; the company briefly surpassed the tech giant in June but didn’t hold the lead for long. As Apple’s stock struggled with slower-than-expected revenue growth in Q4 and Nvidia’s continued AI-focused trajectory, Nvidia has again claimed the top spot, albeit after a few ups and downs in tech stock valuations over recent months. The high demand for AI infrastructure has consistently bolstered Nvidia, despite mid-summer dips from tech stock sell-offs.
Read More: Apple releases new features for developers, including ChatGPT …
Adding to Nvidia’s momentum, the chipmaker is set to join the Dow Jones Industrial Average (DJIA) on November 8th, replacing Intel, its longtime rival. Nvidia’s entry into this prestigious index highlights its dominance in the tech space and long-term growth potential. This move signals Nvidia’s profound transformation since its 1991 founding, from producing chips for 3D gaming to dominating the AI hardware industry.