Nvidia Surpasses Apple to Become the World’s Most Valuable Company
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Nvidia has officially outpaced Apple, taking the top spot as the world’s most valuable company—a move that mirrors the rapidly expanding role of AI in today’s tech landscape.
According to Bloomberg, on November 5, Nvidia’s shares rose 2.9% to reach $139.93, which nudged its market cap to $3.43 trillion, surpassing Apple’s $3.38 trillion. This rise also placed Nvidia ahead of Microsoft, which stands at a market cap of $3.06 trillion. Since late 2022, Nvidia’s stock has skyrocketed over 850%, thanks to the skyrocketing demand for AI-powered graphics processing units (GPUs).
Now accounting for a remarkable 7% of the S&P 500, Nvidia has singlehandedly driven a quarter of the index’s impressive 21% gain this year. The company has been one of the strongest players in the stock market, with a 183% increase in its stock value, showing resilience despite recent concerns about chip production delays and questions around long-term growth.
How AI Propelled Nvidia to the Top
2023 has been a game-changing year for Nvidia. As the leading provider of GPUs that power AI technologies, the company has witnessed consistent growth quarter after quarter. Its revenue has doubled for five consecutive quarters, a rate of growth few companies achieve in today’s market.
Earlier this year, Nvidia’s market cap reached $3 trillion, placing it alongside tech giants Apple and Microsoft. Nvidia briefly overtook Apple in June but slipped back, only to reclaim the top position in November.
While Apple was the first to hit the $1 trillion and $2 trillion milestones, it’s now focusing on its AI ventures with Apple Intelligence on iPhones. However, Apple faces challenges in keeping up with rivals like Nvidia, especially in AI hardware and chip production. Although Apple’s shares have gained 20% this year, the company’s recent earnings report raised concerns, particularly around revenue growth and slowing demand in China.
As for Nvidia, the company’s continued growth is closely tied to the rise of AI. With tech giants like Microsoft, Meta, and Alphabet investing heavily in AI, Nvidia’s processors have become essential for powering advanced models, such as ChatGPT. This leadership in AI hardware has firmly positioned Nvidia at the center of the tech industry's push toward artificial intelligence.
Analysts expect Nvidia’s revenue to double this year and grow an additional 44% next year—a pace that highlights just how much momentum Nvidia has in the AI race. With each quarter, Nvidia isn’t just building chips; it’s building the future of AI.
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