San Francisco: The world’s most valuable corporation, Nvidia, overtook Apple on Friday after a record-breaking stock rise driven by the company’s specialized artificial intelligence chips.
According to LSEG data, Nvidia’s stock market value momentarily surpassed Apple’s $3.52 trillion, reaching $3.53 trillion.
Apple’s shares increased 0.4%, valuing the iPhone manufacturer at $3.52 trillion, while Nvidia’s shares ended the day up 0.8%, with a market value of $3.47 trillion.
In June, Nvidia briefly held the top spot in the world’s valuation before being surpassed by Apple and Microsoft. For several months, the market capitalizations of the tech trio have been near by.
With its stock up 0.8%, Microsoft’s market worth was $3.18 trillion.
As the leading provider of processors for AI computing, the Silicon Valley chipmaker has emerged as the clear victor in a competition between Microsoft, Alphabet, Meta Platforms, and other industry titans to control the new technology.
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Since the 1990s, Nvidia has been known for designing video game processors. Since then, its stock has increased by almost 18% in October, with a series of advances following the announcement of a $6.6 billion fundraising round by OpenAI.
The data storage company Western Digital’s quarterly profit was above analysts’ projections, boosting confidence in data center demand and boosting Nvidia and other semiconductor stocks on Friday.
Russ Mould, investment director at AJ Bell, said, “More companies are now embracing artificial intelligence in their everyday tasks, and demand remains strong for Nvidia chips. It is certainly in a sweet spot, and so long as we avoid a big economic downturn in the United States, there is a feeling that companies will continue to invest heavily in AI capabilities, creating a healthy tailwind for Nvidia.”
The world’s largest contract chipmaker, TSMC, reported a forecast-beating 54% increase in quarterly profit last week, driven by growing demand for chips used in artificial intelligence. Nvidia’s shares continued their surge, hitting a record high on Tuesday.
The lackluster demand for Apple’s devices is causing the company to struggle. Sales of competitor Huawei phones increased 42% in China during the third quarter, while iPhone sales fell 0.3%.
Also read: Nvidia Ranks as the Fourth Most Valuable Company Globally
Analysts predict that Apple’s revenue will increase by 5.55% annually to $94.5 billion when it releases its quarterly results on Thursday, according to LSEG data.
This contrasts with experts’ estimates of Nvidia’s sales growth of almost 82% to $32.9 billion.
The shares of Nvidia, Apple, and Microsoft, which together make up around 5% of the weight of the S&P 500 index, have a significant impact on the highly valued technology industry along with the larger US stock market.