Nvidia Briefly Surpasses Apple in Global Market Valuation

On Monday, Nvidia Corp (NVDA) briefly secured the title of the most valuable company in the world, surpassing Apple Inc (AAPL) in terms of market value.

Nvidia's stock surged, raising its market capitalization to $3.38 trillion, just ahead of Apple's $3.35 trillion, as reported by CNBC.

Although Apple reclaimed its leading position by the end of the trading day, Nvidia's ascent illustrates a remarkable shift from being a startup focused on 3D gaming to becoming a key player in the field of artificial intelligence (AI).

Also Read:Taiwan Semiconductor Faces Rising Energy Costs, Potential Outages Threaten Production

The company’s impressive growth can be largely attributed to its graphics processing units (GPUs). Originally designed for gaming, these GPUs have become essential for AI applications, facilitating advancements in deep learning and cloud computing.

Nvidia has experienced a tremendous rise in revenue, doubling in five quarters and tripling within three. This growth is propelled by the robust demand for its Blackwell AI GPU. Major tech companies, including Microsoft Corp (MSFT), Meta Platforms Inc (META), Alphabet Inc (GOOG, GOOGL), and Amazon.com Inc (AMZN), are investing significantly in Nvidia's GPUs, particularly the H100 model, to enhance their AI projects.

Recently, Nvidia has been added to the Dow Jones Industrial Average, taking the place of Intel Corp (INTC).

Jim Cramer has pointed out that Google’s anticipated increase in investments in AI infrastructure next year could serve as a substantial boost for Nvidia.

Cramer remarked that Alphabet's solid earnings in the third quarter and their growing emphasis on AI positioned Nvidia for prospective gains in the sector.

Nvidia's origins date back to 1993 when co-founder and CEO Jensen Huang met with engineers Chris Malachowsky and Curtis Priem at a Denny's in San Jose to bring their vision to life.

Their early ambition was to create affordable computing chips, which first materialized in 1995 with the launch of the NV1 chip.

Although the NV1 faced technical difficulties that nearly led to Nvidia's bankruptcy, their subsequent innovation, the RIVA 128 chip, achieved commercial success in 1997.

Investors looking to gain exposure to Nvidia can consider shares in the SPDR S&P 500 ETF Trust (SPY) and iShares Core S&P 500 ETF (IVV).

Price Action: As of the last update, NVDA stock has risen by 2.8%, reaching $139.88 on Tuesday.

Also Read:

• Applied Materials and Lam Research Shift Supply Chains Away from China to Meet New US Guidelines

Photo: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by editors.

Market news and data presented by various information sources.

Nvidia, Apple, market