NVIDIA on Friday removed Apple as the world's most valuable company after a record rise in its stock supported by growing demand for new artificial intelligence chips for supercomputing. According to data from the London Stock Exchange Group, NVIDIA's market capitalization briefly reached $3.53 trillion, while Apple's value was $3.52 trillion.
The company's stock rose in the latest trading 2.2% to reach a market value of $ 3.52 trillion, while Apple's share rose 0.9%, making its market value $ 3.54 trillion. In June, NVIDIA briefly became the world's most valuable company, before being overtaken by Microsoft and Apple. The market capitalization of the three technology companies remained close for several months, with Microsoft's market capitalization reaching $3.20 trillion.
Nvidia's shares have jumped about 18 percent since the start of October, amid a winning streak after Chat GPT developer Open AI announced a $6.6 billion funding round. Shares of Nvidia and other semiconductor companies rose on Friday after data storage firm Western Digital reported quarterly earnings that beat analysts' estimates, boosting optimism about demand for data centers.
A. J.Bel, Ross Mold: "More companies are now introducing AI into their daily tasks and demand for Nvidia chips will remain strong." "It's definitely a good situation, and as long as we're away from a major recession in the U.S., there's a sense that companies will continue to invest heavily in AI capabilities, which creates favorable conditions for NVIDIA."
Nvidia shares hit an all-time high on Tuesday after continuing their rally last week when T. S. M. C, the world's largest contract chipmaker, reported a 54 percent jump in quarterly profit, beating expectations, thanks to growing demand for chips used in artificial intelligence. Meanwhile, Apple is facing a decline in demand for its smartphones, and iPhone sales in China fell 0.3 percent in the third quarter, while sales of rival Huawei phones jumped 42 percent.
As Apple prepares to announce its quarterly results on Thursday, analysts expect its revenue to rise 5.55% year-on-year to $94.5 billion, according to data from the London Stock Exchange Group, while Nvidia, analysts expect its revenue to grow by about 82% to $32.9 billion. Nvidia, Apple and Microsoft have a significant impact on technology stocks, as well as the US stock market in general, with the three companies accounting for about 20% of the S&P 500 weight.
Reuters