Nvidia Briefly Overtakes Apple as World’s Most Valuable Company Amid AI Boom

Nvidia’s market value briefly surpassed Apple’s with shares peaking at a $3.53 trillion valuation, just above Apple’s $3.52 trillion, according to data from the London Stock Exchange Group (LSEG). Although Nvidia closed the day with a slightly lower value of $3.47 trillion, this surge underscores Nvidia’s dominance in the AI hardware space, a sector that has propelled the chipmaker into a fierce competition with tech giants like Microsoft and Apple.

In October alone, Nvidia’s stock climbed 18%, buoyed by a surge in demand for its AI-centric processors. This upswing was further fueled by a $6.6 billion funding round for OpenAI, the company behind ChatGPT, which underscored growing industry demand for Nvidia’s powerful AI processors. Additionally, Western Digital’s recent earnings report, which exceeded analysts’ expectations, boosted optimism about data center demand, further supporting Nvidia’s stock performance.

Nvidia’s rise aligns with growing adoption of artificial intelligence across industries. Investment director Russ Mould from AJ Bell pointed out, “More companies are embracing AI in everyday tasks, and demand remains strong for Nvidia chips.” He added that this trend would likely continue unless an economic downturn disrupts spending.

While Nvidia’s market gains reflect its critical role in AI hardware, Apple faces challenges, particularly in smartphone sales. In China, for example, iPhone sales dropped 0.3% in the third quarter, contrasting with a 42% surge for Huawei’s competing models. Despite these hurdles, analysts forecast a 5.55% increase in Apple’s quarterly revenue, reaching $94.5 billion, compared to Nvidia’s projected 82% revenue growth to $32.9 billion.

The technology sector remains dominated by Nvidia, Apple, and Microsoft, which collectively represent roughly 20% of the S&P 500’s weight. As the market eyes Nvidia’s remarkable 190% stock gain this year, driven by the generative AI boom, the company’s stock and options are increasingly popular with traders. Some experts, like Rick Meckler of Cherry Lane Investments, suggest that investor sentiment may significantly influence Nvidia’s long-term value.