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Thursday, November 21, 2024

Nvidia’s Dominance – Surpasses Apple to Become the World’s Most Valuable Company in the AI Era

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  • Nvidia’s market capitalization reached $3.43 trillion, surpassing Apple’s $3.38 trillion, marking it as the world’s most valuable company.

The company reported $30 billion in revenue for Q2 2025, a 122% year-over-year growth, and forecasts $32.5 billion in revenue for Q3 2025.

Nvidia’s stock surged nearly 3% on Tuesday, with a 2024 increase of almost 300%, driven by booming demand for AI GPUs and major investments from companies like Microsoft.

Nvidia has overtaken Apple to become the world’s most valuable company, marking a significant shift in the tech industry driven by the rapid growth of artificial intelligence (AI). The company’s market capitalization rose nearly 3% on Tuesday, reaching $3.43 trillion, surpassing Apple’s $3.38 trillion. Nvidia’s stock has surged dramatically in 2024, nearly tripling, and closed at $139.91 before a slight dip in after-hours trading.

Nvidia’s growth is largely attributed to its pivotal role in powering AI operations through its graphics processing units (GPUs), which are essential for running AI models like OpenAI’s ChatGPT. Over the past five quarters, Nvidia’s revenue has doubled, reflecting the soaring demand for its technology. Earlier this year, the company became the third to reach a $3 trillion market cap, joining Apple and Microsoft. While Nvidia briefly surpassed Apple in June, it has now secured its place as the leading tech giant.

Although Apple is actively exploring the AI space, including the introduction of its Apple Intelligence feature on iPhones, it has faced challenges in competing with Nvidia. Apple’s AI rollout has been slower, and the company has struggled to secure the necessary chips to fuel its AI innovations. In contrast, Nvidia continues to dominate GPU production and has maintained its lead with significant investments from companies like Microsoft, which is also using Nvidia’s GPUs to support its own AI efforts. Microsoft, with a market cap of around $3.06 trillion, remains in third place.

Nvidia’s momentum was further boosted by its recent addition to the Dow Jones Industrial Average, following the removal of Intel. This move reflects the growing influence of the semiconductor industry and Nvidia’s leadership within it.

Under CEO Jensen Huang’s leadership, Nvidia has become a key player in the AI revolution. The company expects $32.5 billion in revenue for the third quarter of fiscal 2025 and will host a conference call on November 20 to discuss its financial results.

With the demand for AI chips continuing to rise, Huang has requested that SK hynix deliver the next generation of high-bandwidth memory (HBM4) six months ahead of schedule, highlighting the urgency of meeting AI computing needs. Nvidia remains focused on supporting the modernization of global data centers, which are rapidly adopting accelerated computing and generative AI technologies.

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