- Nvidia is ahead of Apple as the world’s most valuable company, worth $3.53 trillion
- The milestone is driven by demand for the company’s advanced AI chips
- Nvidia maintains the lead among three-trillion-dollar-worth companies
Nvidia has surpassed Apple as the world’s most valuable company with a market valuation of $3.53 trillion ahead of Apple’s $3.52 trillion.
The feat is driven by increased demand for Nvidia’s Artificial Intelligence (AI) chips and a funding round of $6.6 billion from Open AI, owners of ChatGPT, whose language models are trained by Nvidia’s Graphic Processing Units (GPUs).
The company’s shares surged to an all-time high recently, propelled by financial results from the world’s largest contract chipmaker, TSMC, resulting in a 54 per cent growth in profit amid rising demand for AI chips.
Investors are already anticipatory ahead of the company’s third-quarter results, with projected revenue of about $32.5 billion below market expectations of $32.9 billion.
Nvidia maintains lead among three-trillion-dollar-worth companies
On June 18, Nvidia reached $3.334 trillion, becoming the most valuable company in the S&P 500, after crossing the $1 trillion mark only a year ago.
The company’s investment in chips or semiconductors used to power many AI applications has boosted its revenue.
For the year ended March 31, 2024, Nvidia’s revenue reached $60.9 billion, which is a 126 per cent growth from the figures recorded in the previous year.
Nvidia also recorded a 681 per cent growth in its operating income to $33 billion, which represents an operating margin of 54.2 per cent.
The company’s financial performance in the fiscal year was driven by a 217 per cent growth in its data centre revenue. It also recorded $47.5 billion from the sales of GPUs and InfiniBand used in data centres.
Nvidia had edged out Microsoft, valued at $3.317 and Apple, the third most valuable company, with $3.286 trillion valuation.
The combined shares of Nvidia, Apple and Microsoft account for up to 20 per cent of S&P 500 index. Their performance is a huge influence on the United States’ market and the technology sector.
With increased interest and demand for AI, the shares of the S&P 500 have surged and drawing the interest of investors.
Nvidia has been the toast of many investors as gains have pushed it for the fore of options trading and its contracts are among the most actively traded recently.
Investments in AI, cloud business push Amazon stocks to $2 trillion valuation
Meanwhile, TheRadar reported that Amazon, America’s multinational technology company, has joined the $2 trillion stock valuation club owing to investment in Artificial Intelligence (AI), becoming the fifth tech company to reach the threshold after Alphabet, Nvidia, Microsoft and Apple.
The company’s shares increased to 3.9 per cent on Wednesday, June 26, to close at $193.61, leading to a market value of $2.01 trillion.