Thought Leadership
Nvidia has overtaken Apple as the world’s most valuable company for the first time. The chip manufacturer’s market capitalization briefly reached USD 3.53 trillion, narrowly surpassing Apple’s market capitalization of USD 3.52 trillion.
The remarkable rise of the Silicon Valley company is driven by the unprecedented demand for specialized chips for artificial intelligence (AI). Nvidia, which became known primarily as a manufacturer of graphics processors for video games in the 1990s, has become the leading supplier of AI semiconductors.
The company’s share price rose by 18% in October alone. The share price received an additional boost from the recently announced financing round of the AI company OpenAI in the amount of 6.6 billion dollars.
While Nvidia is benefiting from the AI boom, Apple is facing subdued demand for its iPhones. In the important Chinese market in particular, the Group recorded a 0.3% decline in sales figures in the third quarter, while its domestic competitor Huawei achieved growth of 42%.
The growth prospects of the two companies differ significantly: while analysts are forecasting sales growth of 5.55 percent to 94.5 billion dollars for Apple, Nvidia is expected to see a leap in sales of 82 percent to 32.9 billion dollars.
