Nvidia about to surpass Apple as second most valuable company in the world

Nvidia is about to surpass Apple as the second most valuable company in the world, thanks to the surge in adoption of AI applications. The company’s high-end chips have become essential for almost all AI applications, such as OpenAI’s ChatGPT chatbot, which has helped Nvidia’s stock price nearly triple in the past year, reaching $2.68 trillion. In contrast, Apple lost its top spot to Microsoft earlier this year due to weak demand for iPhones and tough competition in China, although sales have started to grow again in April.

Nvidia has become a leader on Wall Street, with a strong presence in the S&P 500 and Nasdaq in New York. The company has seen impressive surges in its stock price, reaching a record high of $1,096.33 per share at the end of May. Additionally, Nvidia has accelerated its growth from $1 trillion to $2 trillion in 2024, surpassing strong players like Amazon, Google (Alphabet), and Saudi Aramco. Compared to the predictions made a year ago, Nvidia has consistently exceeded the high expectations of financial analysts on Wall Street in terms of revenue and profits. The demand for its graphic processors far exceeds the supply, and Nvidia – which is also popular in the derivatives market – recently marked the fifth consecutive session in which over a million Nvidia call options were exchanged, the longest streak in the company’s history according to Reuters analysis of Trade Alert data.

Nvidia‘s success can be attributed to its focus on AI technology, which has become increasingly important in various industries. As AI continues to transform businesses and everyday life, companies like Nvidia are at the forefront of innovation, providing the essential hardware needed for AI applications to thrive. With the continued growth of the AI market, Nvidia is well positioned to maintain its strong performance and potentially surpass Apple as the second most valuable company in the world.