The World
Nvidia Overtakes Apple
Nvidia, the leading provider of GPUs crucial for developing and running advanced AI software like OpenAI’s ChatGPT, experienced remarkable growth in 2023. As the primary supplier of GPUs for AI-powered computers, the company saw its revenue double in each of the past five quarters.
: Nvidia surpasses Apple to become the world’s most valuable company, driven by its dominant role in AI technology and GPU production.
Nvidia has surpassed Apple to become the world’s most valuable company, marking a significant shift in the tech industry driven by the explosive growth of artificial intelligence.
On Tuesday, November 5, Nvidia’s market cap rose nearly 3 per cent, closing at $3.43 trillion, edging past Apple’s $3.4 trillion. Nvidia’s stock, which has nearly tripled in value this year, finished the day at $139.91, though it saw a slight dip in after-hours trading.
Remarkable Growth Fueled by AI Demand
The company has seen extraordinary growth in 2023, cementing its position as the primary supplier of GPUs for AI-driven computers.
This surge in demand has resulted in Nvidia doubling its revenue in each of the past five quarters. Nvidia’s GPUs are integral to the development and operation of advanced AI technologies such as OpenAI’s ChatGPT.
Over the past five years, Nvidia’s stock has surged by more than 2,700%, propelling the company into the elite $3 trillion market cap club and briefly overtaking Apple as the world’s most valuable company.
Investors Bet on Continued AI Growth
“Over the past few quarters, it seems like the focus has been primarily on inflation data, employment figures, and Nvidia’s performance,” said Fall Ainina, director of research at James Investment Research.
“Nvidia surpassing Apple in market capitalization not only highlights its position as the leading beneficiary of the AI infrastructure boom, but it also signals that investors anticipate the AI surge will continue.”
Apple’s Struggle to Keep Pace with AI Leaders
While Apple, the first company to achieve $1 trillion and $2 trillion market caps, continues to navigate its role in the AI boom, Nvidia leads the charge in GPU production.
Apple’s shares have risen more than 20% this year, and it recently introduced Apple Intelligence on iPhones, touting a more private and useful AI experience.
However, Apple has faced challenges with a slow AI rollout and has secured fewer AI-powered chips compared to its competitors.
Nvidia’s Shift from Gaming to AI Innovation
Founded in 1991 to create chips for 3D gaming, Nvidia has thrived in recent years for an entirely different reason.
Over the past decade, researchers and scientists discovered that Nvidia’s chip designs, initially intended for rendering graphics, were ideal for the parallel processing needs of AI. In response, Nvidia developed specialized software and more powerful chips tailored to AI applications.