NVIDIA Surpasses Apple to Become World's Most Valuable Company Amid AI Boom
AInvestTuesday, Nov 5, 2024 11:00 pm ET
1min read
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NVIDIA, the renowned AI chip giant, has recently surpassed Apple in market valuation, ascending to become the most valuable publicly traded company globally. At the close of trading on Tuesday, NVIDIA's stock was priced at $139.91 per share, marking a 2.84% increase and placing its market value at approximately $3.43 trillion. Meanwhile, Apple's shares rose 0.65% to $223.45, equating to a market value of $3.38 trillion.

This achievement marked the culmination of trends over recent weeks, during which NVIDIA’s market capitalization frequently rivaled Apple’s during trading sessions, but until Tuesday, had yet to definitively close higher. Back in June, NVIDIA briefly overtook Apple in market value though quickly surrendered its lead.

In the midst of this financial gesturing, Apple has contended with a series of challenges. Recent fluctuations in its stock performance saw a decline following the release of their latest fiscal report, which, although showing revenue increases, reflected a dip in net profit due to substantial tax expenditures handed down by the European Union. Reports also hinted at potential further fines under the EU’s Digital Markets Act, presenting an uncertain regulatory environment.

NVIDIA’s frequent milestones are in stride with ongoing insights from Taiwan Semiconductor Manufacturing Company (TSMC). The chipmaking behemoth has consistently highlighted burgeoning AI demand, with their executives vocalizing that this demand surge is only in its incipient stages. This optimism is bolstered by their projection that revenue from AI server processors might triple this year.

In the competitive AI chip sphere, NVIDIA continues to maintain a significant advantage over rivals like AMD, dominating sectors such as data center GPUs. NVIDIA's upcoming fiscal third-quarter report, anticipated on November 20, will likely provide further insights into the firm’s financial vigor amid AI sector growth.

With TSMC signaling substantial capital expenditure intentions aimed at expanding manufacturing capacity, responses to surging AI demands appear promising. For NVIDIA, this development lays the groundwork for further capitalizing on market demands, reinforcing its leadership in AI hardware solutions.

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