Apple is surpassed by Nvidia as the most valuable corporation in the world.

 

On Tuesday, the chipmaker giant Nvidia overtook IT powerhouse Apple in terms of market capitalization, marking a new milestone. Following a 2.9% gain in its share price, Nvidia's market capitalization surpassed Apple's $3.4 trillion market capitalization to reach $3.43 trillion.

The indications had been there, and considering how sharply Nvidia's stock has increased in recent months, the development was scarcely shocking. The company's shares have increased by around 850% since the end of 2022, and Nvidia has benefited from the current (and overwhelming) investor euphoria surrounding AI and its potential. 

This year, Nvidia's stock nearly tripled due to the explosive rise of GPUs alone.

Nvidia, a leading provider of graphics chips for 3D gaming, has expanded its focus from 3D gaming to AI applications and data processing. The company has become a dominant player in the AI landscape, powering infrastructure for advanced generative AI models like OpenAI's ChatGPT and Google's Gemini. 

Nvidia now produces nearly 75% of the global AI accelerators. The company's revenue has doubled in the past five quarters, and profits have grown from $2.3 billion in early 2022 to $31.5 billion by mid-2024. 

The company is expected to continue growing its revenue and profits in the current fiscal year, with a 44% increase in 2025. Nvidia currently accounts for 7% of the S&P 500 Index.

Nvidia has capitalized on the AI infrastructure boom, partnering with major clients like Microsoft, Google, and Amazon. 

These companies use Nvidia GPUs in their AI-powered cloud and data center operations, contributing to Microsoft's AI initiatives, enhancing Amazon Web Services' AI cloud services, and improving ad targeting for Meta, parent company of Facebook, Instagram, WhatsApp, and Threads.

Apple has been surpassed by Nvidia, a chipmaker that integrates its AI functionalities into its devices. 

Nvidia's market cap has surpassed its own twice, first in June when it surpassed both Apple and Microsoft. The current development marks the second time Nvidia's market cap has surpassed its own, with Microsoft currently ranked third with a market cap of nearly $3.1 trillion. Apple was the first to reach the $1 trillion milestone.