On Tuesday, NVIDIA’s market capitalisation rose by almost 3%, reaching $3.43 trillion and surpassing Apple’s $3.38 trillion valuation. The company’s stock closed at $139.91, with a slight dip in after-hours trading. This marks a significant shift in the tech industry, as NVIDIA has now become the world’s most valuable company, overtaking Apple. Despite Apple’s introduction of “Apple Intelligence” on its devices, which offers a more privacy-focused AI experience, the company faces challenges such as slower AI deployment and a reduced supply of AI chips compared to its competitors. This rise in NVIDIA’s market capitalisation reflects a larger trend as investors increasingly turn towards AI companies. According to Fall Ainina, director of research at James Investment Research, “NVIDIA surpassing Apple in market capitalisation not only highlights its position as the leading beneficiary of the AI infrastructure boom, but it also signals that investors anticipate the AI surge will continue.” NVIDIA’s growth has been driven by its dominance in the GPU market, providing crucial hardware for AI applications like OpenAI’s ChatGPT. In the past year, NVIDIA’s revenue has doubled each quarter, solidifying its role as a backbone of AI infrastructure. This success has led to a nearly threefold increase in NVIDIA’s stock value in 2023, with shares surging over 2,700% in the past five years.
