On October 25, Nvidia 'dethroned' Apple to claim the title of the world's most valuable company with a market capitalization of up to 3,530 billion USD.
Nvidia has become the world's most valuable company
Nvidia's stock value reached $3.53 trillion on October 25. Apple followed closely behind with $3.52 trillion, according to Reuters citing data from the London Stock Exchange Group (LSEG).
The breakout came as Nvidia's stock experienced a record-breaking rally driven by strong and continued global demand for its supercomputer chips that run artificial intelligence (AI) technology.
Nvidia shares have risen about 18% since the beginning of October, following the closing of a record-breaking $6.6 billion funding round by OpenAI, the company behind ChatGPT. Nvidia supplies the chips used to train models like ChatGPT’s GPT-4.
"Now more companies are applying AI to everyday tasks, and demand for Nvidia chips is always strong," said Russ Mould, investment director at AJ Bell (UK).
The next big test will come when Nvidia announces its third-quarter results in November. Nvidia in August forecast third-quarter revenue of about $32.5 billion (plus or minus 2%).
After meeting with Nvidia CEO Jensen Huang, Morgan Stanley analyst Joseph Moore noted that production of the tech company's next-generation Blackwell chips is expected to ramp up dramatically and that the chips have been booked for 12 consecutive months.
Nvidia shares came under pressure in August after the company confirmed that production of its Blackwell chips had been delayed until the fourth quarter of this year.
According to observers, shares of Nvidia, Apple and Microsoft are having a huge impact on the high-value technology sector as well as the US stock market in general.
Nvidia stock is up nearly 190% year-to-date thanks to strong traction in generative AI (AI that can generate new content and ideas).
And in the near term, Nvidia's sales will remain impressive. The question is whether the AI-related growth will last in the long term.
Source: https://thanhnien.vn/nvidia-lat-do-apple-de-tro-thanh-cong-ty-co-gia-tri-nhat-the-gioi-185241025231054359.htm
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