NVIDIA on Its Way to Snatch Apple’s 2nd Spot as the World’s Most Valuable Company

Apple’s reign as the world’s second-most valuable company could be nearing its end. NVIDIA, the semiconductor company, thanks to its amazing AI chips, is rapidly approaching Apple’s market value.

The dominance of NVIDIA’s high-end chips in AI applications like OpenAI’s ChatGPT has given it a near-tripling of its stock value in the past year, reaching $2.68 trillion.

This comes in contrast to Apple, which earlier this year who lost its top spot to Microsoft. Apple is currently valued at $2.92 trillion and faces challenges, including weak iPhone demand and stiff competition in China and being behind in the race of AI.

Analysts point to Apple’s potentially slowing innovation as a key factor.

“Apple’s innovation curve seems to have flattened. Nvidia, on the other hand, has been able to catch wave upon wave of growth… perfectly matching innovation with demand”

Said Brian Mulberry of Zacks Investment Management.

NVIDIA holds the record for the fastest growth from $1 trillion to $2 trillion market value, surpassing the likes of Amazon and Google’s parent company Alphabet.

The stock’s forward earnings valuation has decreased despite the rising share price, which means strong investor confidence.

With Nvidia’s relentless rise, Apple’s position as the world’s second-most valuable company is under serious threat. The battle between these tech titans for market dominance is far from over, as only time will tell if Apple’s AI-powered features will be enough to drive iPhone sales and up the market value. We’ll hear more about everything Apple is expected to unveil during the upcoming Worldwide Developers Conference (WWDC 2024), slated to take place from June 10 to June 14.

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