Nvidia Surpasses Apple as World’s Most Valuable Company Amid AI Chip Demand Surge

Nvidia briefly overtook Apple as the world’s most valuable company on Friday, as demand for its specialized AI chips fueled a record stock rally. Nvidia’s market value momentarily reached $3.53 trillion, just above Apple’s $3.52 trillion, before settling slightly below Apple’s value by the close. Both tech giants, along with Microsoft, have been competing closely in terms of market capitalization in recent months, with Microsoft currently valued at $3.2 trillion.

The Silicon Valley-based Nvidia has become the dominant supplier for AI processors, capturing a strong market position in a race with tech heavyweights like Microsoft, Alphabet, and Meta Platforms to capitalize on emerging AI technology. Nvidia’s stock has surged about 18% in October alone, driven in part by OpenAI’s recent $6.6 billion funding round and optimism over strong data center demand after Western Digital’s positive quarterly results.

“Nvidia is in a prime position as demand for AI integration grows across industries,” said Russ Mould, investment director at AJ Bell.

Meanwhile, Apple faces headwinds with iPhone sales slowing, particularly in China where third-quarter sales slipped 0.3% while competitor Huawei saw a 42% surge. Apple is set to report quarterly earnings on Thursday, with analysts projecting modest 5.55% year-over-year revenue growth. By comparison, Nvidia’s revenue is expected to grow by nearly 82%.

This year’s AI-driven demand has contributed to a nearly 190% increase in Nvidia’s stock price, with its options also seeing high trading volumes as the company capitalizes on the generative AI boom. “The question now is whether Nvidia’s impressive revenue stream will be sustainable,” commented Rick Meckler, partner at Cherry Lane Investments.