Nvidia has become World’s largest company on Tuesday, surpassing Apple as the artificial intelligence boom continues to excite Wall Street.
“Nvidia overtaking Apple in market cap not only conveys that it is the biggest beneficiary of the AI infrastructure cycle, but it suggests people expect the AI boom will continue”, said by Fall Ainina, director of research at James Investment Research.
Previously, chip-making giant Nvidia became the largest traded company in June, although it only held the record for a day. It’s worth is currently more than Amazon and Meta combined.
Nvidia’s share price rose 2.9% to $139.93 which results in the market capitalization of $3.43 trillion, ahead of Apple at $3.38 trillion. Its share price has increased more than 850 percent since the end of 2022.
All biggest tech companies are heavily exposed to AI, like- Apple with its newly launched iPhones; Microsoft, Amazon and Alphabet with their cloud businesses and AI services, and Meta Platforms’ AI features and ad targeting. Except Apple, all these companies are among Nvidia’s largest customers, and they committed to continue the spend on AI.
Tens of billions of dollars have been invested by the world’s biggest tech companies into Nvidia’s powerful AI technology that is the central component for training powerful generative AI systems such as OpenAI’s, ChatGPT or Google’s Gemini.
Also, 183% advance of Nvidia is the third-largest in the S&P 500 this year, which is behind Vistra Corp. — the power producer (that has seen a surge in demand related to AI) — and data-analysis software firm Palantir Technologies.
The recent strength of chip-making Giant has come as the company calmed investor concerns about issues involving its Blackwell chip, and beyond the Blackwell optimism, recent sales from Taiwan Semiconductor Manufacturing Co. showed strong AI demand.
The implication of AI is extraordinarily large and Nvidia among all benefiting the most to big tech companies that are investing hundreds of billions into AI.
According to the report compiled by Bloomberg, it is expected that the revenue of Nvidia will get more than double in its current fiscal year and rise another 44% during the next.
Well, it’s a great achievement of Nvidia to become World’s largest company by surpassing Apple.
