Nvidia, the leading chipmaker for AI, is rapidly approaching a major milestone—dethroning Apple as the world’s most valuable company.
On Monday, Nvidia’s stock surged 2.4%, closing at $138.07, elevating the company’s market value to $3.39 trillion. This places Nvidia just behind Apple, valued at $3.52 trillion, and ahead of Microsoft, which stands at $3.12 trillion. Nvidia’s latest climb follows months of competition between the three tech giants for the title of the world’s most valuable company, a distinction Nvidia briefly held in June before being overtaken by Microsoft.
Nvidia’s rise has been driven by the AI revolution, as tech titans such as Alphabet, Microsoft, and Amazon race to dominate the space. Analysts at TD Cowen commented on this, stating that leading companies in AI are facing a “Prisoner’s Dilemma” scenario, where the stakes of not investing in AI could be devastating, further fueling spending.
Despite a slight delay in the production of Nvidia’s next-generation Blackwell chips until the fourth quarter, demand for its existing AI chips remains strong. TD Cowen reiterated its $165 price target for Nvidia, dubbing it their “Top Pick” and predicting continued robust demand.
Apple and Microsoft both saw gains on Monday, rising nearly 2% and 0.7%, respectively, contributing to the S&P 500’s 0.8% increase. With Nvidia, Apple, and Microsoft accounting for about 20% of the S&P 500’s weight, their stock performances have a significant impact on the index’s overall movement.
Taiwan Semiconductor Manufacturing Co., which produces Nvidia’s processors, is expected to report a substantial 40% rise in quarterly profits, reflecting soaring demand for AI components. Analysts predict that Nvidia’s revenue will more than double, with annual sales expected to reach nearly $126 billion, according to LSEG data.
