Nvidia Hits $3.50 Trillion, Poised to Overtake Apple's $3.53 Trillion Valuation
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Nvidia (NVDA, Financial) is inches away from becoming the world's biggest company in terms of market capitalization, with a value of $3.50 trillion, just behind Apple (AAPL, Financial), which has a value of $3.53 trillion. The added competitive pressure is shifting towards the growth of Nvidia's demand for artificial intelligence-powered supercomputing chips, making it a key driver of the technology battle.
It should be noted that increased value of Nvidia is taking place amid even more extensive use of AI in various industries, also boosted by the recent news regarding $6.6 billion funding round in OpenAI. Nvidia's chips, which undergird training of cutting-edge models, such as OpenAI's GPT-4, lie at the centre of this shift.
As before, with the changes in market cap leadership, Nvidia has briefly topped other tech titans earlier this year. The current distance points to a change at the pinnacle of the technology industry. The increasing need for AI capabilities that remain constant keeps Nvidia's market performance on the rise, which means that surpassing Apple may not be a distant dream for Nvidia.
Fueling Nvidia's run is the strong growth of key partners such as TSMC, which cut its Q3 profit by 54% due to the increasing demand for AI chips. This economic setting helps explain Nvidia's rise as organizations continue to turn to artificial intelligence as a tool for optimizing operations and growth.
When viewed from this perspective, Nvidia has been responding to general trends prevalent across industries of artificial intelligence and machine learning, as pointed out by professionals, including Russ Mould of AJ Bell, stating the sustainable market that could possibly sustain Nvidia's growth. The tech community observes this with keen interest as Nvidia steadily marches closer to joining the prestigious list of being the world's most valuable company, a feat which is a testament to its strategic direction/opportunities and the growing relevance of AI technology.
This article first appeared on GuruFocus.