Nvidia (NVDA.O) briefly overtook Apple (AAPL.O) as the world’s most valuable company on Friday, driven by unprecedented demand for its specialized AI chips. During trading, Nvidia’s market cap surged to $3.53 trillion, edging out Apple’s $3.52 trillion valuation, according to data from LSEG. Nvidia closed the day 0.8% higher, with a valuation of $3.47 trillion, while Apple’s stock saw a modest increase, closing at $3.52 trillion.
This milestone underscores the dominance of Nvidia, Apple, and Microsoft in driving Wall Street to record highs in 2024. The trio’s market capitalizations have been closely aligned for months, with Microsoft (MSFT.O) ending Friday at a $3.18 trillion valuation after a 0.8% gain.
Nvidia, originally known for designing processors for gaming in the 1990s, has transformed into a powerhouse in AI computing. This October alone, its stock has risen by around 18%, a trend further boosted by OpenAI’s $6.6 billion funding announcement. The company’s position as the leading supplier of AI processors has solidified its role at the forefront of the AI race, competing with tech giants like Microsoft, Alphabet (GOOGL.O), and Meta Platforms (META.O) as they vie for dominance in the AI space.
Adding momentum, semiconductor stocks, including Nvidia, saw gains on Friday following a positive earnings report from data storage company Western Digital (WDC.O), sparking optimism for sustained demand in data centers.
“Nvidia has hit a sweet spot,” says Russ Mould, investment director at AJ Bell. “As more companies incorporate AI into everyday operations, the demand for Nvidia’s chips remains robust. As long as the U.S. avoids a major economic downturn, we can expect companies to continue their heavy investment in AI, creating a strong tailwind for Nvidia.”
