NVIDIA Surges Past Apple: Reclaims Top Spot with Stellar 10% Stock Rally
1min read Recently, NVIDIA (NVDA) has shown impressive stock market performance, rising for three consecutive days with a total gain of 10.11%. This upward momentum reflects investor confidence in the company’s prospects and positions it prominently among global tech stocks.
Market analysis suggests that NVIDIA's rise is closely linked to its leadership in the artificial intelligence sector. The company's dominance in the GPU market places it at an advantage amid growing demand for AI chips, crucial for developing AI software like ChatGPT. Despite a slowdown in growth, NVIDIA's revenue almost doubled in the latest quarter, reaching $35.08 billion.
At the CES conference, NVIDIA's founder Jensen Huang emphasized the importance of combining artificial intelligence with autonomous driving for the future. He announced plans to collaborate with major car manufacturers, expressing optimism about the potential of the autonomous driving market to reach a multi-trillion-dollar scale. NVIDIA's automotive business is projected to grow to $5 billion by 2026, highlighting its positive outlook for this sector.
Additionally, during the RTX AI Day event, NVIDIA unveiled its next-generation RTX 50 series GPUs, which solve the previous generation’s overheating issues with an innovative 12V-2×6 connector design. This enhancement boosts power safety and stability, improving user experience.
From an investment perspective, NVIDIA's ongoing breakthroughs in multiple areas indicate strong growth potential. Despite market fluctuations, its innovation and leadership in AI and autonomous driving make it a focal point for investors. For those seeking diversification in tech stocks, NVIDIA undoubtedly presents a compelling option.
On January 22, NVIDIA surpassed Apple to reclaim its position as the world's largest publicly traded company by market value, according to foreign media reports. As NVIDIA's stock gained over 2% on Tuesday, its stock has risen about 5% this year. This follows a 171% rise in 2024 and an almost 239% surge in 2023, driven by strong demand for AI chips.
Apple's stock, in contrast, saw a 3% decline, having dropped 11% this year despite a 30% increase at one point in 2024. Although Apple introduced its Apple Intelligence AI, its involvement in AI’s rapid development is not as deep as NVIDIA's.
NVIDIA's GPU market dominance is crucial for AI software deployment, such as ChatGPT. While revenue growth has slowed, its latest quarterly revenue nearly doubled to $35.08 billion. Meanwhile, Microsoft, a key client of NVIDIA GPUS, plans to invest $80 billion in AI data centers in fiscal 2025.
In November last year, NVIDIA joined the Dow Jones Industrial Average, replacing Intel and aligning with blue-chip members like Apple and Microsoft. As of the close on Tuesday, NVIDIA's market value was approximately $3.45 trillion, surpassing Apple at $3.35 trillion, with Microsoft trailing at $3.2 trillion.
