Nvidia\u00a0dethroned Apple\u00a0as the world\u2019s most valuable company on Friday following a record-setting rally in the stock, powered by insatiable demand for its specialized artificial intelligence chips.<\/p>\n
Nvidia\u2019s stock market value briefly touched $3.53 trillion, slightly above Apple\u2019s $3.52 trillion, LSEG data showed.<\/p>\n
Nvidia ended the day up 0.8%, with a market value of $3.47 trillion, while Apple\u2019s shares rose 0.4%, valuing the iPhone maker at $3.52 trillion.<\/p>\n
In June, Nvidia\u00a0briefly became\u00a0the world\u2019s most valuable company before it was overtaken by Microsoft\u00a0and Apple. The tech trio\u2019s market capitalizations have been neck-and-neck for several months.<\/p>\n
Microsoft\u2019s market value stood at $3.18 trillion, with its stock up 0.8%.<\/p>\n
The Silicon Valley chipmaker is the dominant supplier of processors used in AI computing, and the company has become the biggest winner in a race between Microsoft, Alphabet, Meta Platforms\u00a0and other heavyweights to dominate the emerging technology.<\/p>\n
Known since the 1990s as a designer of processors for videogames, Nvidia\u2019s stock has risen about 18% so far in October, with a string of gains coming after OpenAI, the company behind ChatGPT, announced a funding round of $6.6 billion.<\/p>\n
Nvidia and other semiconductor stocks got a lift on Friday after data storage maker Western Digital\u00a0reported quarterly profit that beat analysts\u2019 estimates, buoying optimism about data center demand.<\/p>\n
\u201cMore companies are now embracing artificial intelligence in their everyday tasks and demand remains strong for Nvidia chips,\u201d said Russ Mould, investment director at AJ Bell.<\/p>\n
\u201cIt is certainly in a sweet spot and so long as we avoid a big economic downturn in the United States, there is a feeling that companies will continue to invest heavily in AI capabilities, creating a healthy tailwind for Nvidia.\u201d<\/p>\n
Nvidia\u2019s shares hit a record high on Tuesday, building on a rally from last week when TSMC, the world\u2019s largest contract chipmaker, posted a forecast-beating 54% jump in quarterly profit driven by soaring demand for chips used in AI.<\/p>\n
Meanwhile, Apple is struggling with tepid demand for its smartphones. iPhone sales in China\u00a0slipped\u00a00.3% in the third quarter, while sales of phones made by rival Huawei surged 42%.<\/p>\n
With Apple set to report its quarterly results on Thursday, analysts on average see its revenue climbing 5.55% year over year to $94.5 billion, LSEG data showed.<\/p>\n
That compares with analysts\u2019 projections for Nvidia of nearly 82% revenue growth to $32.9 billion.<\/p>\n
Shares of Nvidia, Apple and Microsoft have an outsized influence on the richly valued technology sector as well as the broader U.S. stock market, with the trio accounting for about a fifth of the S&P 500 index\u2019s\u00a0weight.<\/p>\n
Optimism about the prospects for AI, expectations that the Federal Reserve will considerably bring down U.S. interest rates, and most recently, an upbeat start to the earnings season, helped lift the benchmark S&P 500 to an all-time high last week.<\/p>\n
Nvidia\u2019s massive gains have helped boost the stock\u2019s appeal for option traders and the company\u2019s options are among the most traded on any given day in recent months, according to data from options analytics provider Trade Alert.<\/p>\n
The stock has surged nearly 190% so far this year as the boom in generative AI led to a series of blowout forecasts from Nvidia.<\/p>\n
\u201cThe question is whether the revenue stream will last for a long time and will be driven by the emotion of investors rather than by any ability to prove or disprove the thesis that AI is overdone,\u201d said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.<\/p>\n
\u201cI think Nvidia knows that near term, their numbers are likely to be quite remarkable.\u201d<\/p>\n<\/p>\n
Nvidia\u00a0dethroned Apple\u00a0as the world\u2019s most valuable company on Friday following a record-setting rally in the stock, powered by insatiable demand for its specialized artificial intelligence chips. Nvidia\u2019s stock market value briefly touched $3.53 trillion, slightly above Apple\u2019s $3.52 trillion, LSEG data showed. Nvidia ended the day up 0.8%, with a market value of $3.47 trillion, […]<\/p>\n","protected":false},"author":0,"featured_media":11723,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-11722","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/11722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=11722"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/11722\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/11723"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=11722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=11722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=11722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}