Nvidia on top again: Overtaking Apple as AI demand fuels market surge
Nvidia Inc. NVDA surpassed Apple again AAPL Friday to become the world’s most valuable company.
What happened: On Friday, Nvidia’s market capitalization at one point reached $3.53 trillion, slightly more than Apple’s $3.52 trillion, Reuters reported. This change in leadership came as a result of a record jump in Nvidia’s stock price, driven by a surge in demand for new artificial intelligence supercomputing chips.
“Demand for Nvidia chips remains strong as more companies now incorporate artificial intelligence into their daily operations,” Russ Mold, investment director at AJ Bell, told Reuters.
NVIDIA stock rose nearly 18% in October on news of a $6.6 billion funding round by OpenAI. OpenAI, known for creating ChatGPT, relies on Nvidia chips to train large-scale models like GPT-4, and Nvidia is well-positioned to take advantage of the growing demand for advanced AI infrastructure.
SEE ALSO: Nvidia pursues growth in India: AI partnerships with Reliance, Infosys, Wipro, expansion into robotics and key industries
Why it matters: Nvidia’s rise to the top is evidence of the growing influence of AI and the growing demand for AI chips. In June, the company surpassed Microsoft and Apple to become the world’s most valuable publicly traded company.
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