Nvidia Powers Up

Nvidia Powers Up

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  • Nvidia briefly claimed the top spot as the world’s most valuable company on Friday, surpassing Apple in market value for the first time since June, when it held the position momentarily before Microsoft and Apple regained it. Nvidia’s market value hit $3.53 trillion amid skyrocketing demand for its AI-specialized chips, only to end the day slightly below Apple at $3.47 trillion, with Apple closing at $3.52 trillion. Known for its roots in gaming processors since the 1990s, Nvidia’s October stock surge was further fueled by OpenAI’s $6.6 billion funding round, adding momentum to its impressive gains amid a broader rally in semiconductor stocks like Western Digital, which reported strong quarterly profits.

  • The market cap competition between Nvidia, Apple, and Microsoft, which currently stands at $3.18 trillion, reflects the high stakes in tech dominance, particularly in AI—a space Nvidia has come to lead as major players like Microsoft, Alphabet, and Meta scramble for share. Bolstered by soaring demand for AI chips, Nvidia’s revenue is projected to climb 82% this year to $32.9 billion, a stark contrast to Apple’s anticipated 5.55% revenue increase, reflecting the stark growth trajectory AI technology is offering. Nvidia's chip demand and optimism about AI's future potential continue to energize investors, even as doubts persist on whether this growth will sustain long term.

Why it matters

In the race to innovate, Nvidia's rise underscores the sweeping shift in technology investments toward AI capabilities.

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