Nvidia is on the verge of becoming the world’s most valuable company as its stock prices surge to new records, putting pressure on Apple. The Nvidia Corporation stock price rose by 2.4% on October 14, closing at USD 138.07 and making the firm’s market capitalisation to be about USD 3.39 trillion. This places Nvidia slightly below Apple’s market cap of USD 3.52 trillion, fuelling talk that it might soon unseat the tech titan as Wall Street’s most valuable.
The rise in the stock of Nvidia is mainly due to rising investor optimism about its AI processors. As more and more large tech companies such as Microsoft and Alphabet continue to increase their efforts in AI, Nvidia has become a key stakeholder in this growing industry. TD Cowen analysts stated that the competitive environment looks like a prisoner’s dilemma, where firms have to spend much money on AI technologies.
Nvidia is not the first company to have such a performance; the company was the world’s most valuable for a short time in June 2024 before being dethroned by Microsoft. The current competition between these tech goliaths underlines their overwhelming control of the S&P 500 index; they contribute approximately 20% of the index’s worth.
Although the Blackwell chips, Nvidia’s new chips to be released soon, have recently undergone a slowdown in production ramp, the firm has dismissed these concerns, arguing that the existing products are still popular. This has proved to be a potential growth area for the company; its stock has increased by more than 190% year to date, which shows that there is strong demand for AI-related technologies.
Experts believe that Nvidia will remain on top of the AI chip market and expect sales to grow even more, some estimating it to hit USD 130.6 billion by FY 2025. This optimism is premised on the projected compound annual growth rate of the AI industry at 42% in the next ten years.
In summary, as Nvidia's stock climbs and investor enthusiasm grows, all eyes are on whether it will soon unseat Apple as the most valuable company globally—a testament to the transformative power of AI technology in shaping the future of business and investment.
