Nvidia passed Apple in market capitalization on Tuesday, becoming the world’s most valuable publicly traded company for the second time. Nvidia’s stock climbed nearly 3%, closing with a market cap of $3.43 trillion, surpassing Apple, which stood at $3.4 trillion.
Nvidia shares have nearly tripled this year, fueled by investor optimism in its ability to sustain rapid growth through its graphics processing units (GPUs) and its leadership in the artificial intelligence market. Over the past five years, Nvidia’s stock has surged by over 2,700%, with revenue doubling in each of the past five quarters and tripling in three of them. The company has emerged as a critical supplier of GPUs used in developing and deploying advanced AI systems, including OpenAI’s ChatGPT.
Apple, meanwhile, has experienced a 17% increase in its share price in 2024. Analysts suggest that the recent rollout of the Apple Intelligence suite for iPhones could drive sales and establish the company as a leader in “edge AI,” which focuses less on GPU-dependent servers.
Historically, Apple achieved several milestones, becoming the first company to reach $1 trillion and $2 trillion in market value. Nvidia had briefly overtaken Apple in June before sliding back over the summer. Microsoft, which ranks third with a market cap of approximately $3.1 trillion, remains a significant Nvidia customer, relying on its GPUs for partnerships with OpenAI and Microsoft’s AI initiatives.
Founded in 1991 with a focus on producing chips for 3D gaming, Nvidia found new momentum as researchers discovered that its chips were well-suited for AI’s parallel processing needs. Nvidia has since refined its technology to meet the demands of AI, producing more advanced chips and software.
Apple recently reported a 6% increase in quarterly revenue, though it projected slower-than-expected growth for the current period. Nvidia is scheduled to release its financial results on November 20. Additionally, S&P Dow Jones revealed last week that Nvidia will join the Dow Jones Industrial Average on Friday, replacing Intel, and joining Apple in the prestigious blue-chip index.
