Nvidia overtakes Apple as world’s largest AI company.
Nvidia’s stock rose by 2.9 percent to reach $139.93, boosting its market capitalization to an impressive $3.43 trillion. This milestone has positioned the chipmaker as one of the world’s most valuable companies, capturing the growing influence of artificial intelligence on the tech industry. Nvidia now represents approximately 7 percent of the S&P 500 Index’s total weight, reflecting its substantial impact within the stock market. This latest valuation underscores Nvidia’s leading role in AI-driven advancements, as its cutting-edge graphics and computing technology continue to drive the industry’s expansion and reshape the competitive landscape within the tech sector.
Nvidia, the graphics chip giant, has surpassed Apple to become the world’s largest company by market capitalization, marking a significant milestone in the artificial intelligence (AI) era. As of the market close late on Tuesday, Nvidia’s valuation reached a staggering $3.43 trillion, slightly outpacing Apple’s $3.38 trillion market value. This achievement underscores Nvidia’s pivotal role in the AI-driven tech landscape, as its advanced chips become increasingly essential in powering AI applications and transforming industries.
Under the leadership of CEO Jensen Huang, Nvidia has experienced remarkable growth over the past year. Although the company briefly overtook Apple in market cap for a day in June, this latest valuation solidifies its standing. Nvidia’s stock recently rose 2.9 percent to $139.93, resulting in a substantial $3.43 trillion market capitalization. Nvidia now represents an impressive 7 percent of the S&P 500 Index’s total weight, reflecting its growing influence within the market. This weight is a testament to Nvidia’s ongoing dominance in the semiconductor sector, especially in the realm of AI, where its chips are in high demand across global data centers and cutting-edge technology platforms.
Microsoft, another major tech competitor, currently holds a market cap of $3.06 trillion, showcasing the intense competition among tech giants vying for the top position in a rapidly evolving market.
In the second quarter of its fiscal year ending July 28, Nvidia reported record-breaking revenue of $30 billion, marking a 15 percent increase from the previous quarter and a staggering 122 percent rise from the same period a year ago. These results reflect the growing demand for Nvidia’s GPUs, particularly those supporting AI and data-heavy applications. The Hopper GPU architecture, designed for high-performance AI tasks, has been instrumental in driving Nvidia’s revenue as data centers around the globe work to modernize computing capabilities with accelerated processing and generative AI.
Amid this explosive growth, Nvidia has also rewarded its shareholders. In the first half of its fiscal year 2025, the company returned $15.4 billion to shareholders through share repurchases and cash dividends.
Looking ahead to the third quarter of fiscal 2025, Nvidia has projected revenue of $32.5 billion, with a slight variance of plus or minus 2 percent. This outlook suggests that Nvidia anticipates continued strong performance, driven largely by the sustained demand for its AI-focused products. The company has scheduled a conference call for November 20, where it will discuss its third-quarter financial results, which concluded on October 27. Nvidia’s Chief Financial Officer, Colette Kress, will provide written commentary on these results ahead of the call, offering insights into Nvidia’s financial strategies and priorities moving forward.
To further meet the demand for AI-enabled computing, Huang recently requested that SK hynix expedite the delivery of its next-generation high-bandwidth memory (HBM), known as HBM4. Originally slated for a later release, Huang has urged SK hynix to deliver the HBM4 chips six months earlier than planned. HBM technology is crucial for Nvidia’s AI accelerators, which handle data- and energy-intensive tasks fundamental to advanced AI operations. The request underscores Nvidia’s ambitious drive to scale its production of high-performance AI chips, especially as demand for generative AI technology grows beyond traditional text-based models and begins to encompass more complex applications across various fields, including vision, speech, and decision-making.
The demand for Nvidia’s AI chips has surged alongside the rapid development of AI and machine learning applications. Global companies are increasingly adopting Nvidia’s GPU and AI technology to support a new wave of computing. This transformation aligns with Nvidia’s vision of an AI-driven future, where its graphics and computing solutions play a central role in powering everything from autonomous vehicles to natural language processing and real-time data analysis.
Huang’s leadership has been instrumental in steering Nvidia through this period of unprecedented growth. With a focus on innovation, Nvidia has invested significantly in research and development, enabling it to remain at the forefront of AI and computing advancements. As AI continues to drive demand for more robust and efficient processing solutions, Nvidia’s strategic partnerships with companies like SK hynix are critical in ensuring that it can meet these demands with next-generation technologies.
In conclusion, Nvidia’s rise to the top as the world’s most valuable company highlights the transformative power of artificial intelligence in today’s market. The company’s stock growth, market influence, and strategic planning all reflect its commitment to capitalizing on the AI revolution. By achieving record revenues, advancing cutting-edge technology, and expanding partnerships to secure critical components, Nvidia is well-positioned to maintain its leading role in the AI era. As it continues to innovate and expand, Nvidia’s impact on the tech industry and beyond is likely to endure, setting new standards for performance, scalability, and influence within the global market.