Nvidia Surpasses Apple in Market Valuation, if Only for a Moment

On Monday, Nvidia Corp (NVDA) briefly seized the title of the most valuable company in the world, edging out Apple Inc (AAPL) in terms of market capitalization.

Nvidia's stock price surged, pushing its market cap to an impressive $3.38 trillion, just surpassing Apple's $3.35 trillion, according to reports from CNBC.

Despite Apple reclaiming its lead by the end of the trading day, Nvidia's remarkable rise underscores its transition from a 3D gaming startup to a significant player in the realm of artificial intelligence (AI).

Much of Nvidia's recent success is attributed to its graphics processing units (GPUs), which were initially designed for gaming but have now become essential for AI applications, facilitating advancements in deep learning and cloud computing.

In the past few quarters, Nvidia's revenue has experienced explosive growth, doubling over five quarters and tripling within a span of three quarters. This surge is driven by robust demand for its Blackwell AI GPU, which major technology companies such as Microsoft Corp (MSFT), Meta Platforms Inc (META), Alphabet Inc's Google (GOOG, GOOGL), and Amazon.com Inc (AMZN) are investing in to fuel their AI initiatives.

Nvidia has also made its mark by recently being added to the Dow Jones Industrial Average, taking the place of Intel Corp (INTC).

Financial analyst Jim Cramer recently pointed out that Google's intention to boost its investments in AI infrastructure next year could provide Nvidia a significant boost. He noted that Alphabet's strong earnings in the third quarter and its increasing focus on AI position Nvidia favorably for continued success in this sector.

Nvidia's incredible journey began in 1993 when co-founder and CEO Jensen Huang partnered with engineers Chris Malachowsky and Curtis Priem at a Denny's in San Jose, where they conceived the idea of building the company. Huang's vision centered on creating affordable computing chips, which first came to fruition in 1995 with the launch of the NV1 chip. Although the NV1 faced technical challenges that nearly led to Nvidia's bankruptcy, the company's subsequent invention—the RIVA 128 chip—achieved commercial success in 1997.

For investors looking to gain exposure to Nvidia, options include the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV).

Price Action: As of the latest check, NVDA stock is up 2.8%, trading at $139.88.

Overall, Nvidia’s brief reign as the most valuable company highlights its rapid growth and underscores the rising influence of AI technology in the market.

Nvidia, Apple, Valuation