Nvidia briefly claimed the title of the world’s most valuable company on Friday, surpassing Apple after a powerful rally driven by soaring demand for its specialized AI chips. Nvidia’s market value reached $3.53 trillion, slightly above Apple’s $3.52 trillion, according to LSEG data. Although Nvidia closed up 0.8% at a market value of $3.47 trillion, Apple still held a strong position, rising 0.4% to end at $3.52 trillion.
Nvidia’s growth has been fueled by a significant shift toward artificial intelligence, where it dominates as the leading provider of processors for AI applications. Its stock has surged 18% in October, bolstered by a $6.6 billion funding round from OpenAI, the company behind ChatGPT. Adding to the momentum, a robust quarterly earnings report from Western Digital on Friday highlighted the strength of data center demand, further lifting Nvidia and other chip stocks.
Despite recent gains, Apple faces challenges, with iPhone sales down 0.3% in China in the third quarter, while competitor Huawei saw a 42% increase. Analysts expect Apple’s revenue to grow by about 5.55% in its upcoming report, while Nvidia’s revenue is projected to soar by nearly 82%.
As companies increasingly integrate AI into daily operations, Nvidia is well-positioned to benefit, barring an economic downturn, creating what analysts describe as a “healthy tailwind” for the Silicon Valley giant.