Nvidia briefly unseats Apple as world’s most valuable company
- Nvidia's market value hit $3.53 trillion on October 26, 2024, before Apple reclaimed its position by the end of trading.
- The significant rise in Nvidia's stock price is largely due to increasing demand for its GPU chips used in AI applications.
- This competition illustrates the broader trend of tech companies' valuations being significantly influenced by advancements in artificial intelligence.
On October 26, 2024, Nvidia briefly surpassed Apple to become the world's most valuable company, reaching a market value of $3.53 trillion. Shares of Nvidia peaked at $144.13 during the trading day before a slight decline caused the market valuation to drop back to $3.52 trillion. Apple's share price increased concurrently, allowing it to regain its top position by the end of trading. This fluctuating value reflects the ongoing competitive dynamics within the tech industry. Nvidia's share price has surged dramatically, rising 740% since the launch of OpenAI's ChatGPT in November 2022. This increase is attributed to the heightened demand for Nvidia's GPU chips, which power AI applications. The company's innovation continues with the recent launch of its Blackwell processors, which are anticipated to significantly outperform the existing Hopper chips, providing four times better AI training performance and thirty times better inference capabilities. The growing interest in AI technologies has driven many tech firms, including giants like Amazon, Google, and Microsoft, to transition to Nvidia's products, highlighting the impact of AI on chipmaker valuations. Meanwhile, Bank of America has projected a further increase in Nvidia's stock price, pushing the target from $165 to $190, demonstrating confidence in Nvidia's market dominance. This scenario showcases how AI innovations are impacting market competition and investment decisions among major tech companies. Nvidia's position in the market not only illustrates the company's resilience but also highlights the critical role of AI in shaping the future of technology and market valuations in Silicon Valley.