Nvidia surpasses Apple to become world’s most valuable company with a valuation of ₹3.43 trillion

Nvidia has once again taken over Apple to become the world’s most valuable publicly traded company on Tuesday. The AI chipmaker surpassed Apple in market capitalisation to claim the first place reaching $3.43 trillion after its stock surged by nearly 3% to $139.93, according to a report by CNBC.

The shares of the company have grown almost three times in 2024 aided by investor confidence in the company’s ability to maintain a rapid growth rate from its graphics processing units (GPUs) as well as a leadership position in the artificial intelligence market, the report said.

Apple’s shares are also up by 17% in 2024. Analysts suggest that the recent release of Apple’s new iPhone series and Apple Intelligence suite can lead to increased sales for the company. The suite’s potential to advance Apple’s position in "edge AI", which relies less on GPU-based servers, could further strengthen the company's leadership in this emerging field.

Nvidia company surpassed Apple’s position on October 26, 2024 as well, according to a report by Reuters.

Nvidia: The GPU leader

Nvidia is a leading supplier of GPUs—the processing units used to develop and deploy advanced AI software. The company’s stock has grown more than 2,700% in the past five years and its revenue has more than doubled in every one of the previous 5 quarters.

The company, founded in 1991 to produce chips for 3D games, is now known for developing powerful AI specialised chips. This is after researchers found that the same chips used for computer graphics and video games can be used for the parallel processing needed in AI.

Nvidia previously surpassed Apple in June when Microsoft was at the top, becoming the most valuable company briefly with Microsoft at second and Apple taking the third spot. The three companies have been in tight competition for the top spot for months.

Nvidia’s entry to S&P Dow Jones

Last week, S&P Dow Jones announced that Nvidia will be added to the Dow Jones Industrial Average this Friday. It will be replacing its longtime competitor Intel. With this, Nvidia will join Apple in the prestigious blue-chip index.

According to a report by AFP, the world's largest tech companies have invested billions of dollars into Nvidia's advanced AI technology as it plays a key role in training powerful generative AI systems like OpenAI's ChatGPT and Google's Gemini.

While Apple reported a 6% increase in revenue for the recent mort quarter, signalling a weaker growth than expected, Nvidia will report its financial performance on November 20, the CNBC report added. The company will host a conference call to announce the results.