NVIDIA beats Apple in Market Cap as AI Fuels Rapid Growth

NVIDIA’s market capitalisation surged by nearly 3% on Tuesday, closing at $3.43 trillion and narrowly edging out Apple’s $3.38 trillion valuation. 

The company’s stock closed at $139.91, though it dipped slightly in after-hours trading. This marked a major shift within the tech industry; NVIDIA has surpassed Apple to become the world’s most valuable company.

Apple, which first reached a $1 trillion market cap in 2018 and later $2 trillion, has seen its own shares rise by over 20% this year. 

Recently, Apple introduced ‘Apple Intelligence’ on its devices, which delivers a more privacy-focused AI experience. However, the company faces challenges, including a slower AI deployment and a reduced supply of AI chips compared to its competitors.

The company’s ascent signals a broader trend as investors increasingly look toward AI companies. 

“NVIDIA surpassing Apple in market capitalisation not only highlights its position as the leading beneficiary of the AI infrastructure boom, but it also signals that investors anticipate the AI surge will continue,” commented Fall Ainina, director of research at James Investment Research.

NVIDIA’s growth has been driven by its dominance in the GPU market, supplying critical hardware for AI applications such as OpenAI’s ChatGPT. Over the past year, NVIDIA’s revenue has doubled each quarter, underscoring its role as a backbone of AI infrastructure. This success has led to a nearly threefold increase in NVIDIA’s stock value in 2023, with shares surging over 2,700% in the past five years.