Nvidia surpasses Apple as 'world’s most valuable company'

Nvidia briefly overtook Apple to become the world’s most valuable company on October 25, marking a milestone for the semiconductor giant. Nvidia’s valuation surged to $3.53 trillion as its stock reached a high of $144.13, outpacing Apple’s $3.52 trillion.

By mid-day trading, both companies were neck and neck in market value, each sitting around $3.52 trillion.

This ascent highlights Nvidia’s meteoric rise since late 2022, when OpenAI’s launch of ChatGPT catalyzed demand for Nvidia’s AI-enabled GPUs.

In less than two years, Nvidia’s stock has climbed over 740%, adding $3.1 trillion in market valuation as AI applications have swept industries.

As a key supplier of graphics processing units (GPUs) essential for artificial intelligence, Nvidia has capitalized on a tech revolution that has redefined the cloud, healthcare, and finance sectors.

Analysts project further growth for Nvidia, expecting it could soon surpass a $4 trillion valuation as AI demand increases.

Bank of America recently raised its price target for Nvidia to $190, emphasizing the “generational opportunity” AI provides for Nvidia to lead the market.

CFRA Research has also increased its target to $160, citing an “AI war” among major cloud providers and the anticipated influence of Nvidia’s forthcoming “Blackwell” GPU line on hyperscalers like Amazon and Google.

Nvidia’s success reflects the broader tech rally fueled by advancements in AI, an area also pursued by its competitors Apple and Microsoft.

Apple, which previously reclaimed its title as the world’s most valuable company from Microsoft in June 2024, has also doubled down on AI.

The company announced plans to integrate OpenAI’s ChatGPT into Siri, adding AI-driven features to iPhones. This move has helped Apple maintain a strong position amid the AI surge.

However, Nvidia's rapid rise shows that its dominance in the AI hardware market is accelerating faster than anticipated.

The company's GPUs are widely regarded as indispensable for AI computation, giving Nvidia a competitive edge as the go-to provider for AI infrastructure.

Many tech giants are racing to integrate or enhance AI in their ecosystems, creating a favorable market landscape for Nvidia’s products.

The competition for market leadership is heating up, with Nvidia, Apple, and Microsoft representing the main players in the ongoing AI revolution.

Investors remain bullish on Nvidia’s prospects, confident that the company’s hardware will remain foundational for AI advancements in the coming years.

Nvidia’s market performance will come under further scrutiny in November, when it reports its third-quarter earnings and reveals more about its long-term strategy.

This recent fluctuation underscores the volatility and growth potential within the tech sector, as companies compete to harness AI for their products and services.