ALBAWABA - Following a sharp rise in its stock price due to overwhelming demand for its cutting-edge artificial intelligence processors used in supercomputing, NVIDIA has overtaken Apple as the most valuable business in the world in a major market move.
In contrast to Apple's $3.52 trillion market capitalization, NVIDIA's market value momentarily surged to $3.53 trillion, according to recent statistics from the London Stock Exchange. NVIDIA, which was the most valued business in June until being overtaken by Apple and Microsoft, has made a significant return with this. These top tech firms have been valued similarly, with Microsoft's market capitalization being at $3.20 trillion.
NVIDIA's stock has increased by almost 18% since the beginning of October, driven by upbeat market sentiment after the announcement of a huge $6.6 billion fundraising round by ChatGPT developer OpenAI. One of the main suppliers of the processors needed to train big language models, such as OpenAI's GPT-4 model, is NVIDIA.
"An increasing number of companies are now incorporating AI into their everyday operations, ensuring strong ongoing demand for NVIDIA’s chips," said Ross Mold, investment director at AJ Bell, according to Reuters. He said, "As long as we avoid a significant economic downturn in the U.S., businesses are likely to continue investing heavily in AI capabilities, creating a favorable environment for NVIDIA."
Following TSMC's revelation of a stunning 54% increase in quarterly earnings, which above analysts' forecasts due to the increased desire for AI-related semiconductor technology, NVIDIA's stock reached an all-time high on Tuesday, extending a rally that started the previous week.
