Nvidia Corp. became the largest company in the world on Tuesday, November 6, 2024, with its market capitalisation of $3.43 trillion surpassing Apple’s $3.38 trillion after shares rose 2.9% to $139.93.
This is happening for the second time, with the chipmaker previously becoming the largest company in June this year, although it held this record for only one day.
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Meanwhile, Microsoft is in third place with a $3.06 trillion market cap. Nvidia overtook it just last month to become the second-largest company in the world, behind Apple at the time.
This underscores how dominant artificial intelligence (AI) has become on Wall Street, according to a Bloomberg report which added that Nvidia’s shares rose more than 850% since the end of 2022.
“Over the past several quarters, it has felt like people basically care about inflation numbers, job numbers, and Nvidia numbers,” the report quoted Fall Ainina, director of research at James Investment Research as saying. “Nvidia overtaking Apple in market cap not only conveys that it is the biggest beneficiary of the AI infrastructure cycle, but it suggests people expect the AI boom will continue.”
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Currently, Nvidia accounts for 7% of the S&P 500’s weight and is responsible for around a quarter of its 21% gain this year.
This is also because Wall Street’s biggest companies are heavily exposed to AI, such as Apple with its new AI-enabled iPhones, Microsoft, Amazon, Google, and so on.
The report says analysts expect its revenues to more than double in the current year and rise 44% during the year after.
The recent share price rise came after the company calmed investor concerns about issues with its Blackwell chip, which caused delays. Another reason is OpenAi releasing a new AI model with reasoning capabilities, which is something even Alphabet Inc. is also working on.
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