Nvidia has hit a new high, positioning itself to potentially overtake Apple as the world’s most valuable corporation. On October 14, 2024, Nvidia’s stock price rose 2.4% to $138.07, giving the company a market worth of $3.39 trillion, trailing only Apple’s $3.52 trillion. This spike is mostly driven by high demand for Nvidia’s AI processors, which are critical to the ongoing AI boom. Nvidia, together with Apple and Microsoft, wields considerable power over the S&P 500, accounting for almost a fifth of its weight.
If Nvidia maintains its rising trend, particularly with high expectations for its next-generation Blackwell AI chips, it may soon dethrone Apple. Investors are counting significantly on the company’s ability to fulfill increased demand for AI data center development, which could more than treble its annual revenue.
Nvidia’s rapid expansion has been powered by its dominance in AI technology, particularly its AI processors, which power data centers worldwide. The business has emerged as the driving force behind the AI arms race between digital behemoths such as Microsoft, Google, and Amazon. Investors are counting significantly on Nvidia’s leadership in AI chip manufacture, with analysts expecting that its annual sales will more than treble, topping $126 billion.
Nvidia has already flirted with the top slot. In June 2024, the company briefly outperformed Apple until being surpassed by Microsoft. However, Nvidia’s current momentum, spurred by the projected demand for its next-generation Blackwell processors, indicates that it could soon retake and hold the championship.
Nvidia’s stock performance has helped lift the overall market. Nvidia, along with Apple and Microsoft, accounts for roughly one-fifth of the S&P 500’s entire weight. This provides the three corporations tremendous power over the market’s daily swings. Nvidia’s sustained success may lead to even more impact if tech companies expand their spending in AI development.
