Chip-making giant Nvidia has temporarily overtaken Apple to become the world’s most valuable company, driven by a strong demand for AI technologies.
Nvidia’s shares rose by 2.9% to $139.93 on Tuesday, November 6th, boosting its market value to $3.43 trillion and surpassing Apple’s $3.38 trillion market cap.
This news came shortly after S&P Dow Jones Indices announced that Nvidia would be replacing rival chipmaker Intel in the Dow Jones Industrial Average, which is often viewed as a key indicator of the U.S. stock market.
Nvidia has been on a skyrocketing rise in recent years. According to a Bloomberg report, its shares have risen by more than 850% since the end of 2022.
This underscores the importance placed on artificial intelligence on Wall Street. Emerging as a key player due to its development of powerful computer chips that can power AI models. In particular, as well as its advanced GPUs. While Nvidia is not the only company to develop AI hardware, its focused and innovative approach has kept it decisively in the lead.
Nvidia’s victory over Apple is happening for the second time, with the chipmaker briefly becoming the largest company earlier this June. However, it only retained that position for a day.
Meanwhile, Microsoft is in third place with a $3.06 trillion market cap. Nvidia overtook it just last month to become the second-largest company in the world, and is currently worth more than Amazon and Meta combined.
