What happened?
Nvidia surpassed Apple in market capitalization on Monday, becoming the world’s highest-valued publicly traded company.
Due to the continued increase in demand for Nvidia’s GPUs, its stock price has nearly tripled so far in 2024.
With a market capitalization of $3.39 trillion, Nvidia has overtaken Apple, not only affirming Nvidia’s growth into a tech giant but also symbolizing that the “iPhone moment” for AI has arrived.
Nvidia becomes the focus of AI investment, reaching a market cap of $3.39 trillion.
On November 5, 2024, the stock price of tech giant Nvidia rose by 2%, bringing its market capitalization to $3.39 trillion, surpassing Apple’s $3.36 trillion, and becoming the world’s highest-valued company.
Nvidia’s stock price has almost tripled in 2024 mainly because investors are confident in its growth potential, particularly the company’s graphics processing unit (GPU) technology and its leading position in the AI market. As a major supplier of GPUs, Nvidia’s products are widely used in the development and deployment of AI software, such as OpenAI’s ChatGPT. Over the past five years, Nvidia’s stock price has increased by more than 2,700%.
According to CNBC, Nvidia’s market cap briefly surpassed Apple’s in June, but then declined over the summer. Currently, Microsoft, which ranks third in market capitalization, is also one of Nvidia’s major GPU customers.
Asset management company UBS predicts that the AI market’s compound annual growth rate (CAGR) will reach 72% by 2027, with AI output expected to reach $420 billion, from which Nvidia is anticipated to continue benefiting.
Jensen Huang and Nvidia’s growth journey
Nvidia’s founder Jensen Huang, along with two engineer friends, discussed starting a business at a Denny’s restaurant in San Jose, California in 1993, which was also a place where Jensen Huang had worked in the past.
In 1995, Nvidia launched its first processor, NV1. Although the product was not ideal, Jensen Huang successfully secured funding, allowing the company to continue developing the third-generation graphics chip RIVA 128, starting Nvidia’s legendary journey.
Beyond the early gaming market, Nvidia later ventured into new tech fields like AI, high-performance computing, and cloud computing. Jensen Huang emphasized that Nvidia’s earliest GPU architecture was also beneficial for AI research, especially excelling in deep learning, thus maintaining a market advantage in generative AI and other high-performance computing applications.
Now, with a market cap of $3.39 trillion, Nvidia has surpassed Apple. This achievement not only confirms its growth from a startup to a tech giant but also symbolizes that the “iPhone moment” for AI has arrived.
Sources:
CNBC
,
Forbes