Nvidia briefly dethroned Apple as the world’s most valuable company on Friday, with a market valuation peaking at $3.53 trillion, just surpassing Apple’s $3.52 trillion, according to LSEG data. The Silicon Valley-based chipmaker has seen surging demand for its AI chips, making it a top contender among tech giants like Microsoft and Apple. Nvidia’s valuation ended at $3.47 trillion after a 0.8% gain, while Apple rose by 0.4% to close at $3.52 trillion.
Known for its specialized processors for AI, Nvidia has capitalized on the growing trend of companies integrating artificial intelligence into daily operations. The company’s success in this space has driven its stock up 18% in October alone, particularly following OpenAI’s announcement of $6.6 billion in new funding, further fueling the AI boom. AI demand has also elevated Nvidia’s options trading volume, solidifying its role as a key market driver in the tech sector.
The unprecedented rise in Nvidia’s stock has occurred alongside declining iPhone sales for Apple, especially in China, where Huawei has surged by 42% in smartphone sales. In contrast, Apple saw a 0.3% decline in China in Q3, emphasizing the divergent paths the two companies have taken in the current market landscape.
Nvidia’s AI chip dominance places it as a supplier for major firms like Microsoft, Alphabet, and Meta, all of whom are racing to lead the AI revolution. Nvidia’s focus on data center technology has been validated by strong earnings, buoyed further by Western Digital’s strong quarterly profit, signaling robust data center demand.
Despite Nvidia’s peak valuation on Friday, Apple remains closely competitive as it approaches its Q3 earnings report. Apple’s revenue is expected to see a modest 5.5% growth year-over-year to $94.5 billion, while Nvidia’s growth is projected at nearly 82%, reaching $32.9 billion. Analysts remain optimistic about AI-driven growth across the tech sector, with market participants widely betting on Nvidia’s sustained performance as more companies invest in AI technologies.
