NVIDIA Briefly Reclaims Top Spot from Apple Amid AI-Driven Market Surge
NVIDIA has surpassed Apple to reclaim its position as the world's most valuable company, amid growing investor confidence in the long-term prospects of artificial intelligence. On Tuesday, NVIDIA's stock climbed by 2.9% to reach $139.93, propelling its market capitalization to $3.43 trillion. This elevated NVIDIA above Apple, which stood at $3.38 trillion, and Microsoft at $3.06 trillion, marking a significant milestone for the chipmaker.
However, the lead was short-lived. On November 5, during intraday trading, NVIDIA's market value peaked at $3.38 trillion, once again topping Apple's $3.35 trillion. By the close of trading, NVIDIA's shares rose by 0.48%, ending at $136.05 per share with a market value of $3.34 trillion. In contrast, Apple's shares dipped by 0.4% to $222.01 per share, maintaining a valuation of $3.36 trillion, thereby regaining its position as the most valuable publicly traded company.
NVIDIA's recent ascent marks the second time this year that it has briefly overtaken Apple in market value. In June, NVIDIA experienced a similar peak, only to be surpassed again by Apple shortly afterward. The chipmaker continues to benefit from investor optimism around the burgeoning demand for AI technology, which is anticipated to drive further growth.
In terms of innovation, NVIDIA CEO Jensen Huang recently divulged that the design flaws in the company's Blackwell architecture chips have been resolved with assistance from TSMC, facilitating their production. These advancements are expected to bolster NVIDIA's portfolio as the chips are slated for release in the fourth quarter.
In parallel, the broader tech landscape continues to lean heavily into AI investments. Companies like Amazon and Microsoft are reportedly ramping up their capital expenditures, focusing significantly on acquiring GPUs to support expanding infrastructure needs driven by AI demands. This trend aligns with comments from SoftBank founder Masayoshi Son, who predicts an acceleration in AI spending that will benefit NVIDIA's GPU business, a critical component in AI advances.
Additionally, on November 1, S&P Dow Jones announced a forthcoming inclusion of NVIDIA in the Dow Jones Industrial Average, effectively replacing Intel. This adjustment, effective November 8, underscores NVIDIA's growing prominence and its integral role in the semiconductor industry. As it continues to compete closely with Apple and adjust its strategies accordingly, NVIDIA remains at the forefront of the tech sector's dynamic landscape.