NVIDIA pips Apple as the world’s most valuable company again thanks to growing AI wave

NVIDIA has once again surged past Apple to become the most valuable publicly traded company in the world, buoyed by the unstoppable rise of artificial intelligence. On Tuesday, NVIDIA’s stock climbed nearly 3 per cent, closing with a market cap of $3.43 trillion, just edging out Apple’s $3.4 trillion valuation.

This marks the second time NVIDIA has claimed this title, having briefly surpassed Apple in June before slipping back over the summer.

The chipmaker’s stock has been on fire, almost tripling in 2024, as investor enthusiasm continues to grow around NVIDIA’s dominant position in the AI market. Known for its powerful graphics processing units (GPUs), NVIDIA has become the go-to supplier for developing and deploying advanced AI technologies, including high-profile software like OpenAI’s ChatGPT.

More from Tech

How ChatGPT is becoming everyone’s BFF and why that’s dangerous America ready for self-driving cars, but it has a legal problem

With its stock up a staggering 2,700 per cent over the past five years, NVIDIA has also reported extraordinary financial growth: revenue has more than doubled for five consecutive quarters, even tripling in three of them.

Apple, while still seeing gains, has had a relatively modest rise of 17 per cent in 2024. The company is betting big on AI as well, with the release of its Apple Intelligence suite, which could drive future sales and solidify its position in the “edge AI” market. Unlike NVIDIA, which thrives on GPU-driven AI, Apple is focusing on AI features that run directly on devices, reducing dependence on cloud-based processing.

The rapid success of NVIDIA underscores the evolving tech landscape, where AI has become the key driver of market value. Founded in 1991 with a focus on 3D gaming chips, NVIDIA’s transformation into an AI powerhouse has been nothing short of remarkable.

Impact Shorts

More Shorts

America ready for self-driving cars, but it has a legal problem

Alibaba, Baidu begin using own AI chips as China shifts away from US tech amid Nvidia row

The same chips that once made video games look stunning now power the intricate, parallel processing needed for AI applications. NVIDIA has capitalised on this demand, developing even more powerful chips tailored for AI, and the strategy has paid off handsomely.

Meanwhile, Apple’s financial results have been mixed. Although it posted a 6 per cent increase in revenue for the most recent quarter, the company indicated weaker-than-expected growth for the current period, tempering investor enthusiasm.

Joining the ranks of elite companies, NVIDIA will soon enter the Dow Industrial Average, replacing its longtime rival, Intel. This inclusion further cements NVIDIA’s status alongside tech titans like Apple, which it will join in the prestigious blue-chip index.

Microsoft, which holds the third spot in market cap at around $3.1 trillion, also relies heavily on NVIDIA GPUs for its AI-driven projects, including its partnership with OpenAI and its own AI initiatives.

As NVIDIA prepares to release its next earnings report on November 20, all eyes will be on whether the AI juggernaut can maintain its extraordinary momentum.