Nvidia (NVDA, Financials) briefly surpassed Apple (AAPL, Financials) on Friday to become the biggest company in the world, thanks to high demand for its artificial intelligence chips; Nvidia’s market capitalization reached $3.53 trillion, slightly above Apple’s $3.52 trillion.
While Apple’s shares climbed 0.4%, so valuing the firm at $3.52 trillion, Nvidia’s stock rose 0.8%, so reflecting the worth of the business at the end of trade.
With their closely matched market valuations, Nvidia, Apple, and Microsoft (MSFT, Financials) have all helped Wall Street reach its record highs this year. In June, Nvidia was first; thereafter, Apple and Microsoft took front stage. Following a 0.8% stock rise, Microsoft’s market value as of Friday came to $3.18 trillion.
Key processor provider for artificial intelligence computing, Nvidia’s stock increased roughly 18% in October. The spike tracked a $6.6 billion fundraising round revealed by OpenAI, the startup behind ChatGPT.
Following Western Digital (WDC, Financials) with better-than-expected quarterly earnings, semiconductor stocksincluding Nvidiaalso surged on Friday, inspiring hope about data center demand.
Among options traders, Nvidia is a favorite because of its recent performance. Strong profit projections and growing demand for artificial intelligence technologies have sent the company’s shares about 190% year-to-date upwards.
Apple also struggles with declining smartphone demand, especially in China where iPhone sales dropped 0.3% in the third quarter while competitor Huawei’s phone sales shot 42%. On Thursday, Apple is likely to show a 5.55% year-over-year sales rise to $94.5 billion; experts predict Nvidia’s revenue to rise about 82% to $32.9 billion.
With Nvidia, Apple, and Microsoft accounting for over a quarter of the S&P 500’s weight, its stock has been a significant determinant of the index’s climb to new highs. Investors see great promise in artificial intelligence and anticipate the Federal Reserve to cut interest rates, therefore stimulating the market.
This article first appeared on GuruFocus.
