10/26/2024–|Last updated: 10/26/202401:49 PM (Mecca time)
NVIDIA removed Apple from the throne of the most valuable company in the world, after a record rise in its stock at the close of trading yesterday, Friday, supported by increasing demand for new artificial intelligence chips for supercomputing.
London Stock Exchange Group data indicated that Nvidia’s market value briefly reached $3.53 trillion, while Apple’s value was $3.52 trillion.
For a short period last June, NVIDIA became the most valuable company in the world, before it was overtaken by Microsoft and Apple. The market capitalization of the three technology companies remained close for several months. The market value of Microsoft reached. $3.20 trillion.
Nvidia’s stock has jumped by about 18% since the beginning of this October, amid a series of gains after OpenAI, the developer of GBT Chat, announced a financing round worth $6.6 billion.
Shares of NVIDIA and other semiconductor companies rose yesterday, Friday, after data storage company Western Digital announced quarterly profits that exceeded analysts’ estimates, which strengthened optimism about demand for data centers.
Ross Mold, investment director at AJ Bell, said: “More companies are now incorporating artificial intelligence into their daily tasks, and demand for NVIDIA chips will remain strong.”
He added, “These are certainly good conditions, and as long as we are far from a major economic recession in the United States, there is a feeling that companies will continue to invest strongly in artificial intelligence capabilities, which provides favorable conditions for Nvidia.”
Tech giants
Nvidia shares reached their highest level ever on Tuesday, after continuing an upward march from last week when TSMC, the world’s largest contract manufacturer of electronic chips, announced a 54% jump in quarterly profits, exceeding expectations. This is thanks to the increasing demand for chips used in artificial intelligence.
At the same time, Apple is facing a decline in demand for its smartphones. iPhone sales in China fell 0.3% in the third quarter, while sales of competing Huawei phones jumped 42%.
As Apple prepares to announce its quarterly results next Thursday, analysts expect its revenues to rise by 5.55% on an annual basis to $94.5 billion, according to data from the London Stock Exchange Group.
As for Nvidia, analysts expect its revenues to grow by about 82% to $32.9 billion.
NVIDIA, Apple, and Microsoft have a significant impact on technology sector stocks, as well as on the US stock market in general, as the three companies represent about one-fifth of the weight of the Standard & Poor’s 500 index.
