Nvidia has just surpassed Apple to become the world's most valuable company, with a market capitalization of $3.43 trillion, according to CNBC.
Founded in 1991 with the initial goal of making chips for 3D games, Nvidia has expanded its operations and developed dedicated chips for AI over the past 10 years, recognizing the potential of GPU graphics processing units in parallel processing for AI.
Apple recently reported a 6% increase in quarterly revenue but said growth could slow going forward, while Nvidia is scheduled to report its financial results on November 20. S&P Dow Jones also announced that Nvidia will join the Dow Jones Industrial Average on November 1, replacing rival Intel.
Nvidia has been crowned the world's most valuable public company for the second time, thanks to a strong stock performance that nearly tripled in 2024.
The increase was largely due to high demand for Nvidia's graphics processing units (GPUs) - a key technology in the development of artificial intelligence (AI). As the world's leading GPU supplier, Nvidia is used in the development of advanced AI software such as OpenAI's ChatGPT.
Nvidia's stock has surged more than 2,700% over the past five years, with the company's revenue doubling every quarter, including a three-fold increase in the last three quarters. This growth has put Nvidia at the forefront of the global AI race.
Meanwhile, Apple shares have risen about 17% year-to-date, largely thanks to the release of Apple Intelligence features for the iPhone, which has pushed the company deeper into the field of edge AI — AI technology that is less dependent on GPU-based servers.
Still, Apple can’t hold the top spot in the short term as the market continues to see strong growth from Nvidia. Apple was the first company to reach the $1 trillion and $2 trillion market cap milestones, and Nvidia also surpassed Apple once in June but then lost value in the summer.
Microsoft, now ranked third with a market cap of nearly $3.1 trillion, is also a major Nvidia customer, using Nvidia GPUs to fuel its partnership with OpenAI and its own AI ambitions.
