AI Titan Nvidia Overtakes Apple As World’s Most Valuable Company

Topline

Artificial intelligence kingpin Nvidia became the largest company in the world Monday, surpassing iPhone maker Apple, marking another feather in the cap for the Silicon Valley titan Nvidia.

Key Facts

Key Background

Nvidia briefly surpassed Apple as the biggest company in the world Oct. 25, but Nvidia hasn’t ended a trading session as the largest firm since June. Nvidia designs about 75% of the world’s AI accelerators, the semiconductor technology powering generative AI applications like OpenAI’s ChatGPT chatbot, as demand spikes for the graphics processing units produced by Nvidia. This “insane” demand has translated into a massive earnings uptick and stock market boom. Nvidia’s net income rose from $2.3 billion during the first half of 2022 to $31.5 billion during the first half of 2024, and its share price is up 850% over the last two years. Still, Nvidia stock is actually down 4.8% from its all-time closing high set Oct. 21, but Apple shares are down 6.7% over the same period, hence the flip in their market values. In its earnings report Thursday, Apple beat Wall Street expectations for revenue and adjusted profits, but its weaker outlook for the final period of 2024 disappointed investors.

Surprising Fact

Apple’s financial performance is still far more robust than Nvidia’s, with its $397 billion in projected revenue and $98 billion in net income trouncing Nvidia’s $120 billion in sales and $64 billion net profit, according to FactSet data blending results and average forecasts. But analysts expect Nvidia’s growth trajectory to continue, with its $122 billion in projected 2026 profits just a tick below Apple’s $124 billion.

Further Reading

ForbesApple Earnings: Stock Wavers Despite Strong iPhone SalesBy Derek Saul
ForbesNvidia Can Approach $5 Trillion Valuation With ‘Generational’ AI Opportunity Still Ahead, BofA SaysBy Derek Saul