Nvidia’s shares closed at an all-time high, with the giant AI chip maker on the verge of overtaking Apple as the world’s most valuable company. It came as investors are betting on Nvidia’s current and next-generation AI processors, causing the Jensen Huang-led company’s stock to rise 2.4% to $138.07.
Nvidia becomes the world’s most valuable company for the first time
In June, Nvidia briefly became the world’s most valuable company. Microsoft left it behind because the market capitalization of both the companies was equal for several months.
Market value of Nvidia, Apple and Microsoft
Nvidia’s market cap is $3.39 trillion, slightly less than Apple’s $3.52 trillion and slightly more than Microsoft’s $3.12 trillion. Nvidia, Apple and Microsoft account for about one-fifth of the S&P 500’s weight, giving them a huge impact on the index’s day-to-day gains and losses.
Nvidia shares increased
Nvidia has been Wall Street’s biggest winner in the race between Alphabet, Microsoft, Amazon and other major technology companies to dominate emerging AI technology. TD Cowen analysts wrote in a report, “We believe that the major companies in the AI sector … face an investment environment in which a prisoner’s dilemma-like situation exists – each has to continue spending. Individuals are encouraged, as the cost of not doing so is (potentially) devastating.”
Nvidia confirmed reports in August that its upcoming Blackwell chips production increase had been postponed until the fourth quarter, though the company downplayed the impact, saying customers were buying existing chips.
