Earlier in the month, Nvidia capped Apple by market value for the first time since 2002, and the two went back and forth in rankings in recent days. Last week, Apple also overtook Microsoft to trade in the top spot briefly.
Nvidia Overtakes Microsoft, Apple | Chipmaker becomes the world’s most valuable stock
The ranking is yet another reminder that AI is the top focus of many investors. Nvidia is seen as the biggest and earliest beneficiary of the technology as it dominates the market with its highly sought-after chips that help power data centres running complex computing tasks required by AI applications. Demand for its H100 accelerators are surging and helped drive the chipmaker’s sales up by more than 125% last year.
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Microsoft, for its part, is also seen as an early AI winner given its investment and partnership with OpenAI, which created ChatGPT. And, this week, Apple shares rallied after the iPhone maker finally unveiled its plan for using the technology, appeasing investors at long last.
“We believe over the next year the race to US$4 trillion market cap in tech will be front and centre between Nvidia, Apple, and Microsoft,” Daniel Ives, analyst at Wedbush Securities, wrote in a note.
Nvidia’s surging stock price has made co-founder and CEO Jensen Huang one of the world’s richest people. His net worth has climbed nearly US$75 billion since the beginning of the year to US$119 billion, putting him in 12th place on the Bloomberg Billionaires Index. That’s the biggest gain among his billionaire peers.
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Investors, alongside Huang, argue that Nvidia is more than a chipmaker.
“They’re not just selling chips, they’re selling systems,” Michael Lippert, vice president and portfolio manager at the Baron Capital Inc., said in an interview, pointing to the company’s proprietary software and development ecosystem.
Nvidia’s swift climb to the top has been record breaking, as the company is one of the few firms to have demonstrated significant revenue growth from AI. Shares have risen more than 170% in 2024 through Tuesday’s close, adding more than US$2 trillion to its market capitalization.
“Nvidia’s GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway,” said Ives.
