Nvidia's rapid rise in the AI chip market has positioned it to surpass Apple as the world's second-most valuable company. With an 80% market share and growing demand for AI capabilities, Nvidia's worth has surged to over $2 trillion, propelling it ahead of tech giants like Amazon and Alphabet.
Nvidia Poised to Surpass Apple as Second-Most Valuable Company
( Credit to: Pymnts )
Nvidia, the high-end AI chip market leader, is on track to overtake Apple as the world's second-most valuable company. With an 80% share in the AI chip market and a growing demand for AI capabilities, Nvidia's worth has skyrocketed from $1 trillion to over $2 trillion in just nine months. This surge has propelled Nvidia ahead of tech giants like Amazon, Alphabet, and Saudi Aramco, and it now sits just $230 billion behind Apple and $645 billion behind Microsoft.
While Nvidia enjoys its meteoric rise, Apple is facing challenges due to slowing iPhone sales, which led to Microsoft overtaking it as the most valuable company in January. Nvidia's success has also contributed to the record highs on Wall Street this year, with the company now accounting for over 5% of the benchmark S&P 500 index. Its stock performance has outpaced other tech behemoths, with a 95% increase.
Experts believe that Nvidia's rally is a result of its strong business model and the solid fundamentals underlying the company. Richard Meckler, a partner at Cherry Lane Investments, stated, "Nvidia's rally reflects the incredibly strong fundamentals underlying its current business model." David Wagner, portfolio manager at Aptus Capital Advisors, added, "We continue to believe that in five years or 10 years, we will all be talking about an industry that is far larger than the numbers being bandied about today."
Nvidia's recent earnings report further solidified its market value. During the report, Nvidia's founder and CEO, Jensen Huang, declared that accelerated computing and generative AI have reached a tipping point, with demand surging worldwide across various companies, industries, and nations.
Overall, Nvidia's dominance in the high-end AI chip market and the increasing demand for AI capabilities have propelled the company's value to new heights. As it continues to outperform its competitors and drive innovation in the AI industry, Nvidia's future looks promising.
