Nvidia Surpasses Apple; Becomes Most Valuable Company In World

US-based chip maker Nvidia has become the world’s largest company by surpassing Apple in the overall market capitalisation. During yesterday’s close, the tech giant was valued at $3.43 trillion, while Apple stood at $2.38 trillion.

The rise can be attributed to the growing demand for AI and machine learning technologies as they heavily rely on high-performance computing and data processing capabilities. The chip manufacturer has a strong presence in the AI accelerator market. In this, data centres, cloud computing and generative AI technologies are powered by AI-driven advancements.

The chipmaker’s stock gained by 2.9%, closing at $139,93 apiece. While crossing the $3 trillion-

marked for the first time, Nvidia currently represents 7% of the total weight of the S&P 500.

“Hopper demand remains strong, and the anticipation for Blackwell is incredible,” said Jensen Huang, Nvidia’s founder and CEO. He added, “Nvidia achieved record revenues as global data centres are in full throttle to modernise the entire computing stack with accelerated computing and generative AI.”

During its Q2 earnings. Nvidia reported a staggering 122% surge in its revenue on a Year on Year (YoY) basis, totalling at $30 billion. On a quarterly basis, the company reported a growth of 15%. Previously, the shareholders were returned $15.4 billion via share buybacks and dividends. At the end of the second quarter, the company had $7.5 billion remaining under its share repurchase authorisation. In the third quarter, Nvidia is aiming for a revenue projection of $32.5 billion.

Notably, AI accelerators heavily rely on HBM chips to handle data intensive tasks, which are required by cutting-edge AI models.

While Apple has been a pioneer in technology, especially in consumer electronics, Nvidia has shifted its focus towards AI-driven innovations, which are taking centre stage in global markets.

Currently, Microsoft is the world’s third most valued company with a market cap of $3.6 trillion. It’s also playing a key role in the field of AI, more particularly with its cloud computing services. However, Nvidia remains unbeatable with its unique presence in the AI-powered future.