Skip to main content

Nvidia Overtakes Apple As World's Most Valuable Company

Nvidia dethroned Apple as the world's most valuable company on Friday, following a record-setting rally in the stock powered by an insatiable demand for its new supercomputing AI chips.

Nvidia's stock market value briefly touched $3.53 trillion, while that of Apple was $3.52 trillion, according to data from LSEG.

In June, Nvidia briefly became the world's most valuable company, before it was overtaken by Microsoft and Apple. The tech trio's market capitalizations have been neck-and-neck for several months. Microsoft's market value stood at $3.20 trillion.

Nvidia's stock has risen about 18% so far in October, with a string of gains coming after OpenAI, the company behind ChatGPT, announced a funding round of $6.6 billion. Nvidia provides chips used to train so-called foundation models such as OpenAI's GPT-4.

"More companies are now embracing artificial intelligence in their everyday tasks and demand remains strong for Nvidia chips," said Russ Mould, investment director at AJ Bell.

"It is certainly in a sweet spot and so long as we avoid a big economic downturn in the United States, there is a feeling that companies will continue to invest heavily in AI capabilities, creating a healthy tailwind for Nvidia."

Nvidia's shares hit a record high on Tuesday, building on a rally from last week when TSMC, the world's largest contract chipmaker, posted a forecast-beating 54% jump in quarterly profit driven by soaring demand for chips used in AI.

The next big test will be when Nvidia reports third-quarter results in November. Nvidia in August forecast third-quarter revenue of $32.5 billion, plus or minus 2%, compared with the current average analyst expectation of $32.90 billion, according to data compiled by LSEG.

Morgan Stanley analyst Joseph Moore said in a note dated Oct. 10 that he remains "very bullish" about the company longer term, but the recent rally "raises the bar for earnings somewhat".

After a meeting with Nvidia's CEO Jensen Huang, Moore noted the ramp up in production of its next-generation Blackwell chips appeared to be "quite strong" and are booked out for 12 months. The stock came under pressure in August after Nvidia confirmed reports that the production of Blackwell chips was delayed until the fourth quarter.

Shares of Nvidia, Apple and Microsoft have an outsized influence on the richly valued technology sector as well as the broader U.S. stock market, with the trio accounting for about a fifth of the S&P 500 index's weightage.

Frenzy around the prospects of AI, expectations that the U.S. Federal Reserve will considerably bring down interest rates, and most recently, an upbeat start to the earnings season, have pushed the benchmark S&P 500 to an all-time high last week.

Nvidia's massive gains have helped boost the stock's appeal for option traders and the company's options are among the most traded on any given day in recent months, according to data from options analytics provider Trade Alert.

The stock has surged nearly 190% so far this year as a boom in generative AI prompted the company to issue a series of blowout forecasts.

"The question is whether the revenue stream will last for a long time and will be driven by the emotion of investors rather than by any ability to prove or disprove the thesis that AI is overdone," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

"I think Nvidia knows that near term, their numbers are likely to be quite remarkable."
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



from NDTV News- Special https://ift.tt/c7TvGjL
Labels:

Comments

Post a Comment

Popular posts from this blog

Delhi to Get More EV Charging, Battery Swapping Stations as Cab Aggregators Increase E-Bikes

The NDMC is planning to increase the number of EV charging stations in Lutyens' Delhi and even provide battery swapping facilities at some of these points, a senior official said on Wednesday. With Delhi being among the most polluted capitals in the world, the New Delhi Municipal Council (NDMC) has been making a push for electric vehicles to nudge residents to opt for cleaner vehicle options. There are around 100 electric vehicle (EV) charging stations across the national capital at present and this would be the first time that some of them would have battery swapping facilities, which is quite prominent in Western countries, he said. The official said the aim is to provide easy accessibility to charging stations and to save time by providing swapping facilities. This will give a major push to EVs in the city. Various PSUs, including the Rajasthan Electronics and Instruments Limited (REIL) and the Kerala State Electronics Development Corporation Limited (KELTRON), have approac...
Post a Comment
Read more

PM Modi To Reschedule 3-Nation Europe Visit As Tensions With Pakistan Soar

Prime Minister Narendra Modi has put his three-nation Europe visit on hold as tensions between India and Pakistan have surged in the wake of the terror attack in Jammu and Kashmir's Pahalgam in which 26 civilians were killed by Pak-linked terrorists in a religiously-motivated terror attack. India responded on Wednesday with precision missile strikes on terror camps in Pakistan and Pakistan-occupied Kashmir. PM Modi, who is closely-monitoring the situation, has reportedly asked for his visit to Croatia, Norway, and the Netherlands, which was due next week, to be rescheduled. As per his original schedule Prime Minister Modi was to commence his official visit to the three nations on May 13. He was also going to participate in the India-Nordic Summit in Oslo on May 15 and 16. All three countries have been informed about the change in PM Modi's schedule. They have also been appraised about the current situation between India and Pakistan. Last month too, on the day of the Pahalga...
Post a Comment
Read more

After Nitish Kumar's 'Praise', BJP Says Doors Closed For Him

The opposition BJP in Bihar on Thursday said that its doors were "closed" for Chief Minister Nitish Kumar who dumped the saffron party a year ago, stripping it of power in the state. State BJP President Samrat Choudhary made the averment to this effect in reply to queries from journalists about the Janata Dal United leader's address to the convocation ceremony of Mahatma Gandhi Central University at Motihari. Speaking in the presence of President Droupadi Murmu and Governor Rajendra Arlekar, Mr Kumar had freely spoken of the tussle he had with the then Congress government at the Centre for getting a university approved for Motihari, where Mahatma Gandhi had launched the Champaran Satyagraha. Without mentioning Prime Minister Narendra Modi by name, Mr Kumar acknowledged that the project saw the light of the day only after a change of guard "in 2014" as the UPA government "initially refused and after much persuasion agreed in principle but did not move for...
Post a Comment
Read more