Apple and Nvidia have been in a battle since 2002, but it is only now that Nvidia has safely surpassed Apple in terms of market value. Their operations were different, with Apple focusing on its devices and Nvidia facilitating its semiconductor business across the world. Their paths finally converged, thanks to the emergence of Artificial Intelligence, or AI. Nvidia’s market value is now more than $3.3 trillion, with shares at $135.58 per piece as of Tuesday’s closing.
This year, the stock has jumped by around 170%. That has taken the company even beyond Microsoft. Interestingly, the contest has always been close between Microsoft and Apple. Nvidia was way below both companies. For the first time, the company exceeded the $2 trillion milestone in 2024. Since that time, no force has been able to halt its expansion. It is only in 2024 that its value moved past a trillion & a half US Dollars.
Microsoft and Apple achieved that feat back in 2020 before the pandemic struck the world and caused an economic slowdown.
Artificial intelligence is at the center of several companies. The list extends beyond the top three giants, encompassing companies such as Google and Meta. Nvidia’s H100 accelerator has worked well for the company. The chipmaker’s sales increased by over 125% last year as a result of the surge in demand for its H100 accelerators.
Microsoft might gain an edge from its partnership with OpenAI; however, ChatGPT’s creator is only a core member of the ecosystem that Nvidia has crafted in the world of AI. Its chips are utilized by OpenAI.
The iPhone maker has expressed its commitment to using technology to instill a sense of confidence in investors. Nvidia surpassing the tech giant’s venture would not hamper its roadmap. Both companies have been colliding in the market recently, and such a trend was much speculated at the beginning of the year. The speculation intensified when Nvidia’s market value crossed the $1 trillion milestone.
Every company in the race for AI is next targeting to reach a $4 trillion market cap. Analysts like Daniel Ives from Wedbush Securities have backed this with a note, saying that the race to the target would be obvious in the next year.
Nvidia adding trillions to its market cap has also worked wonders for Jensen Huang. He is the chief executive officer and co-founder of the company. Jensen is now one of the richest people in the world, with a net worth of approximately $119 billion. His net worth at the beginning of the year was $75 billion. He is placed in the 12th position per the Bloomberg Billionaires Index.
Nvidia has a lot ahead of it. Jenson and company investors have said that the company is more than just a chip maker. They have stated that they are selling systems, not just chips. This is an indication that what they sell is indeed a complete package and not just a part of it.
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