Nvidia becomes the world's most valuable company — for the second time this year

Nvidia, the tech giant, has risen again after briefly securing the top spot just a couple of months ago, the company has surpassed Apple to become the world’s most valuable company for the second time this year.

This milestone occurred Tuesday, as Nvidia’s market cap reached $3.431 trillion, surpassing Apple’s $3.377 trillion, according to Companies Market Cap. Nvidia's shares rose by 2.9%, reaching $139.93, allowing it to overtake Apple, which had held the top spot for weeks.

According to a Bloomberg report, Nvidia’s stock has skyrocketed by 850% since the end of 2022, making it one of the fastest-growing companies. Fall Ainina, director of research at James Investment Research, noted, “Nvidia overtaking Apple in market cap not only signals that the company is the biggest beneficiary of the AI infrastructure boom, but it also suggests that investors believe the AI revolution will continue to accelerate.”

Nvidia’s rapid rise can be attributed to several factors, especially its growing influence in the AI sector. Recently, the company has signed important deals with major IT giants in India, strengthening its position in a global market increasingly focused on AI technology.

While Nvidia has faced some bumps along the way—such as delays with its "Blackwell chip" due to architectural issues—the company has managed to overcome these setbacks and continue its growth trajectory.

Currently, Nvidia is projected to more than double its revenue this fiscal year, with Bloomberg analysts predicting a 44% increase in the following year. Wall Street analysts have also consistently raised their earnings and profit estimates for Nvidia, reflecting strong confidence in the company’s future.

This latest leap has many wondering if Nvidia’s reign at the top would be long-term this time, not just a brief moment in the spotlight. Either way, this surge highlights the global shift toward an AI-driven society.

In 2023, Nvidia reportedly generated a significant portion of its $60.92 billion revenue from AI-focused clients looking for the company’s cutting-edge graphics processing units (GPUs) to power their data centres and AI applications.

With more of the big tech companies investing in AI technology, like Apple with Apple Intelligence and Google with Gemini, it would be interesting to watch how they may or may not contribute to Nvidia's increased success especially as Nvidia’s GPUs are becoming the go-to option for businesses and organizations looking to harness the power of AI

With a bright future ahead, Nvidia is well-positioned to remain a major player in the tech industry for years to come.