Nvidia Briefly Surpasses Apple in Market Valuation

On Monday, Nvidia Corp (NVDA) briefly took the crown as the world's most valuable company, surpassing Apple Inc (AAPL) in market capitalization.

Nvidia's stock price surged, driving its market cap to an impressive $3.38 trillion, just ahead of Apple's $3.35 trillion, according to reports from CNBC.

However, by the end of the trading day, Apple managed to reclaim its position as the top company. This momentary lead for Nvidia underlines its remarkable evolution from a 3D gaming startup to a key player in the artificial intelligence (AI) sector.

Nvidia's significant growth is largely attributed to its graphics processing units (GPUs), which were initially designed for gaming. These technologies have become essential in the field of AI, supporting advancements in deep learning and cloud computing.

In recent times, Nvidia's revenue has soared, with figures doubling over five quarters and tripling in just three. This remarkable growth has been fueled by the strong demand for its latest Blackwell AI GPU. Large tech corporations, including Microsoft Corp (MSFT), Meta Platforms Inc (META), Alphabet Inc (GOOGL), and Amazon.com Inc (AMZN), are making substantial investments in Nvidia’s GPUs, such as the H100 model, to enhance their AI initiatives.

Nvidia has also been added to the Dow Jones Industrial Average, taking the place of Intel Corp (INTC), signaling its growing importance in the tech industry.

Financial analyst Jim Cramer pointed out that Google's plans to significantly increase its investments in AI infrastructure next year could provide a major boost for Nvidia. He emphasized that Alphabet's solid earnings in the third quarter and its shifting focus towards AI can set the stage for further growth for Nvidia.

Nvidia's journey began in 1993 when co-founder and CEO Jensen Huang teamed up with fellow engineers Chris Malachowsky and Curtis Priem at a Denny's restaurant in San Jose. At that time, Huang envisioned the development of affordable computing chips, a mission that was realized with the launch of the NV1 chip in 1995.

Despite facing technical challenges that nearly led to bankruptcy with the NV1, Nvidia bounced back with the launch of the RIVA 128 chip, which achieved commercial success in 1997.

For investors looking to gain exposure to Nvidia, options include the SPDR S&P 500 ETF Trust (SPY) and iShares Core S&P 500 ETF (IVV).

Price Action: As of the latest check on Tuesday, NVDA stock has increased by 2.8% to reach $139.88.

Market dynamics continue to evolve, and Nvidia's role in shaping the future of technology, especially in AI, is becoming more prominent.

Nvidia, Apple, Valuation