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Nvidia's Historic Surge: From AI Dominance to Market Titan Toppling Apple

AInvestSunday, Nov 10, 2024 6:00 pm ET
1min read

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.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.