Nvidia Briefly Surpasses Apple in Market Valuation

On Monday, Nvidia Corp (NVDA) briefly became the most valuable company in the world, overtaking Apple Inc (AAPL) in market capitalization.

Nvidia's stock price saw a significant rise, pushing its market cap to $3.38 trillion compared to Apple's $3.35 trillion, according to reports from CNBC.

Despite Apple reclaiming its position by the end of the trading day, Nvidia's momentary rise showcases the company’s impressive evolution from a 3D gaming startup to a leading entity in the field of artificial intelligence (AI).

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A considerable portion of Nvidia’s growth can be attributed to its graphics processing units (GPUs), which were initially designed for gaming. These GPUs are now essential for advancements in AI, supporting developments in deep learning and cloud computing.

Nvidia's revenue has experienced remarkable growth, doubling over five quarters and tripling in three, largely driven by the strong demand for its Blackwell AI GPU. Major technology firms such as Microsoft Corp (MSFT), Meta Platforms Inc (META), Alphabet Inc (GOOGL), and Amazon.com Inc (AMZN) have been making substantial investments in Nvidia's GPUs, specifically the H100 model, to enhance their AI initiatives.

Recently, Nvidia was included in the Dow Jones Industrial Average, where it replaced Intel Corp (INTC).

Jim Cramer remarked on Google’s upcoming increase in investments for AI infrastructure next year, viewing this as a potential significant advantage for Nvidia. He pointed out that Alphabet’s positive earnings in the third quarter and its growing emphasis on AI could lead to further opportunities for Nvidia in this sector.

Nvidia's journey began in 1993 when co-founder and CEO Jensen Huang met with engineers Chris Malachowsky and Curtis Priem in a San Jose Denny's, sparking the idea to launch the company.

Huang was motivated by a vision to create affordable computing chips, which first came to fruition in 1995 with the NV1 chip. Although the NV1 faced technical challenges and nearly drove Nvidia to bankruptcy, the next breakthrough, the RIVA 128 chip, achieved commercial success in 1997.

Investors interested in Nvidia can consider gaining exposure through SPDR S&P 500 ETF Trust (SPY) and iShares Core S&P 500 ETF (IVV).

Price Action: As of the latest update, NVDA stock has risen by 2.8% to reach $139.88.

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Photo: Shutterstock

This content was generated with AI assistance and reviewed by an editorial team.

Nvidia, Apple, Valuation