October 26 (UPI) — Chipmaker Nvidia briefly became the world’s most valuable company on Friday, surpassing Apple in market capitalization, but by the close of trading Apple had regained the top spot.
Nvidia’s stock reached a high of $144.13 on Friday, a 3% increase, increasing Nvidia’s total value to $3.53 trillion compared to Apple’s $3.52 trillion.
Both companies are based in Silicon Valley, Santa Clara County, California.
Shareholders took advantage of Nvidia stock’s all-time high to sell their shares, resulting in Nvidia’s stock falling slightly to $3.52 trillion, while Apple’s stock price fell below market valuation by Friday’s close. The total amount rose to $3.53 trillion.
Nvidia stock closed at $141.54 on the Nasdaq market on Friday.
Nvidia’s stock price could continue to soar as the rise of artificial intelligence increases demand for chipmakers’ products.
Bank of America raised its price target on Nvidia stock from $165 to $190. This is a 38% increase from Friday.
Analysts at Bank of America say Nvidia could maintain up to an 85% share of computer chips used to enable AI.
Nvidia also recently launched Blackwell processors, a demand that Nvidia CEO Jensen Huang called “insane.”
Nvidia expects demand for its Blackwell chips to exceed supply by 2025, and technology companies Amazon Web Services, Dell Technologies, Google, Meta, Microsoft, OpenAI, Oracle, Tesla, xAI It is expected that these devices will migrate to Blackwell chips.
The Blackwell chip is estimated to deliver 4x better AI training performance and 30x better AI program inference compared to the Hopper chip currently in use.
NVIDIA stock has increased 740% since OpenAI launched its ChatGPT-generated AI program in November 2022.
Nvidia makes GPU chips used to power AI applications, and its market share has increased by $3.1 trillion over the past two years.
Nvidia surpassed Microsoft in total value earlier this year.
