Nvidia Overtakes Apple as World’s Most Valuable Company Amid Soaring Demand for AI Chips
Nvidia’s revenue is forecasted to skyrocket by 82% to $32.9 billion to become the single AI industry leader.
Nvidia briefly surpassed Apple to become the world’s most valuable company on Friday, thanks to a record-breaking rally in stock prices caused by huge demand for its AI-focused chips.
The LSEG data showed that Nvidia’s market capitalization hit $3.53 trillion before closing at $3.47 trillion, placing it close to Apple’s estimated $3.52 trillion. This was the first time that Nvidia was ranked for this; in June it surpassed Apple and Microsoft.
Nvidia’s growth is evidence of its competitiveness in the AI chip industry as Microsoft, Google, and Meta spend more heavily on AI technology. Nvidia initially was only building computers for games; today it’s a giant in AI computing, an area where there is a growing need very fast. Nvidia’s share price grew by 18% in October after OpenAI secured $6.6bn. This is proof that buyers trust AI.
As this trend continued, other tech stocks also did well. For example, Microsoft rose 0.8% and is now worth $3.18 trillion. These tech giants have a big impact on the S&P 500 market as a whole. Apple is having a hard time right now; iPhone sales in China dropped 0.3% in Q3, while Huawei’s sales went up 42%. Nvidia is quickly rising in the AI race.
Based on analysts, Apple’s revenue is likely to rise to $94.5 billion, a 5.55% increase from the same period last year. Nvidia’s revenue is forecasted to skyrocket by 82% to $32.9 billion to become the single AI industry leader.
