Nvidia briefly surpassed Apple as the world’s most valuable company, driven by surging demand for its AI chips, highlighting the growing influence of AI in reshaping the tech market. (Source: Image by RR)

Record Stock Gains Push Nvidia’s Market Value Above $3.5 Trillion in a Day before Dropping

Nvidia briefly surpassed Apple as the world’s most valuable company on Friday, with its market value touching $3.53 trillion before closing at $3.47 trillion, just below Apple’s $3.52 trillion. The surge in Nvidia’s stock, driven by high demand for its AI chips, reflects the company’s leading position in the AI technology race against competitors like Microsoft, Alphabet and Meta. This rally follows a series of gains, including an 18% rise in October, fueled by news such as OpenAI’s $6.6 billion funding round and Western Digital’s strong quarterly results.

Historically known for designing video game processors, Nvidia has become the dominant supplier for AI computing chips, benefiting from increased investments in AI as companies incorporate the technology into daily operations. As reported in finance.yahoo.com, recent optimism in the tech sector has lifted the broader U.S. stock market, with Nvidia, Apple and Microsoft collectively accounting for a significant portion of the S&P 500 index’s weight. The stock’s rapid ascent, nearly 190% this year, reflects bullish sentiment around AI’s growth potential, supported by record earnings forecasts.

While Nvidia’s AI-driven growth continues, Apple’s performance contrasts with slower smartphone sales, particularly a 0.3% decline in iPhone sales in China compared to a 42% surge by rival Huawei. Analysts project Apple’s revenue will rise by 5.55% to $94.5 billion, while Nvidia’s revenue is expected to grow nearly 82% to $32.9 billion, underscoring the contrasting momentum between the two tech giants. With Apple set to report quarterly results soon, the market awaits further updates on the company’s financial outlook.

Nvidia’s stock surge has also attracted considerable attention from options traders, positioning it as one of the most actively traded companies in recent months. The company’s remarkable growth is seen as part of a broader AI boom, with investors optimistic about the technology’s future despite some questioning whether the current enthusiasm is sustainable. As Nvidia capitalizes on strong demand for AI chips, the key question remains whether its impressive revenue growth will persist or if the momentum will be affected by market dynamics and investor sentiment.

read more at finance.yahoo.com