10/15/2024–|Last updated: 10/15/202405:47 PM (Mecca time)
NVIDIA stock closed at its highest levels ever – yesterday, Monday – as the heavyweight company specializing in the manufacture of electronic chips used in artificial intelligence is close to displacing Apple from its position as the largest company in the world as measured by market value.
Amid investors’ bets on strong demand for the company’s current and next-generation artificial intelligence processors, Nvidia’s stock rose 2.4% yesterday, Monday, to close at $138.07.
Last June, NVIDIA briefly became the company with the highest market value in the world before Microsoft overtook it. The market capitalization of the three giant technology companies has remained close for several months.
The latest gains raised Nvidia’s market value to $3.39 trillion, slightly less than Apple’s value of $3.52 trillion and higher than Microsoft’s value of $3.12 trillion.
The rise of Nvidia is a reminder that artificial intelligence is the primary focus of many investors, and Nvidia is seen as the largest and oldest beneficiary of the technology, because it dominates the market with its highly sought-after chips that help data centers run the complex computing tasks required by artificial intelligence applications.
Microsoft is also seen as an early AI winner, given its investments and partnership with OpenAI, which created the GPT chat app.
Apple’s stock has risen in recent weeks, especially after the iPhone manufacturer revealed its plan to use the technology, which brought investor satisfaction after a long wait.
“We believe that the race to reach a market value of $4 trillion in technology over the next year will be between Nvidia, Apple and Microsoft,” Wedbush Securities analyst Daniel Ives wrote in a note.
