Nvidia's Historic Surge: From AI Dominance to Market Titan Toppling Apple
Nvidia has made history by becoming the first company with a market capitalization exceeding $3.6 trillion. In the aftermath of the U.S. elections, where President Trump secured a victory, Nvidia's stock soared, highlighting the market's anticipation of potential deregulatory and tax reduction policies that could benefit equities. This surge was particularly notable over two trading days, where Nvidia's stock climbed 4.07% and 2.25%, respectively.
By the close of trading on Thursday, Nvidia's market valuation reached $3.65 trillion, surpassing Apple's previous record of $3.57 trillion set on October 21. Nvidia's remarkable performance has been fueled by its dominance in AI technology, positioning it as the biggest winner on the U.S. stock market. In November alone, its shares have climbed by 12%, and they have tripled since the beginning of 2024.
The rapid ascent in Nvidia's market value means that it now eclipses the combined valuations of several renowned companies such as Eli Lilly, Walmart, JPMorgan Chase, Visa, UnitedHealth Group, and Netflix. Nvidia's continued dominance in the semiconductor industry is further underscored by its anticipation of a significant earnings announcement on November 20, where analysts project an 80% year-over-year increase in quarterly revenue to $329 billion.
The broader tech sector has also shown robust performance post-election, with the S&P 500 tech index rising over 4% in two days. Nvidia reclaimed its title as the world’s most valuable company earlier this week, surpassing Apple and maintaining a competitive edge over other giants like Microsoft and Alphabet. As of Thursday, Apple and Microsoft's market caps stood at $3.44 trillion and approximately $3.16 trillion, respectively.