Nvidia overtakes Apple to become world’s most valuable company amid AI boom

Nvidia has officially surpassed Apple to become the world’s most valuable company, marking a significant shift in the tech industry as artificial intelligence continues to drive market growth. On Tuesday, Nvidia's market capitalization reached $3.43 trillion, edging ahead of Apple’s $3.4 trillion valuation. The company’s stock has surged nearly 200% this year alone, with shares closing at $139.91 before dipping slightly in after-hours trading.

Nvidia's rise to the top has been fueled by its central role in powering AI technologies. As the leading supplier of graphics processing units (GPUs), which are critical for running AI models, Nvidia has seen explosive growth, with revenue doubling for five consecutive quarters. Its GPUs are key to the infrastructure that supports AI operations, including models like OpenAI's ChatGPT, making Nvidia an indispensable player in the AI sector.

In 2023, Nvidia emerged as the go-to source for AI hardware, solidifying its position as a major beneficiary of the AI boom. The company became only the third to ever reach a $3 trillion market cap, joining Apple and Microsoft in this exclusive club. Although Nvidia briefly overtook Apple as the top company by market value in June, it now holds a definitive lead.

Apple, which was the first company to achieve $1 trillion and $2 trillion market caps, has also entered the AI race but has faced challenges in fully capitalizing on the trend. The tech giant has introduced its own AI features, such as Apple Intelligence, which aims to offer a more personalized and private AI experience for iPhone users. However, Apple has struggled with a slower AI rollout and has secured fewer chips for its AI-driven products compared to its competitors like Nvidia and Microsoft.

Microsoft, now the world’s third-largest company with a $3.1 trillion market cap, has also been a major Nvidia customer, investing heavily in AI infrastructure. The company’s collaboration with Nvidia has been pivotal in powering its AI ventures, further strengthening Nvidia’s dominant position in the sector.

Nvidia’s market triumph came just days after it surpassed Intel, another tech giant, to secure a place in the Dow Jones Industrial Average. The chipmaker will join the blue-chip index this Friday, reflecting its growing influence in the semiconductor industry and its role in shaping the future of AI. As Nvidia continues to lead in the AI space, the company’s rapid ascent underscores the shifting landscape of tech dominance, where AI and semiconductor innovation are now the driving forces behind market value.