Nvidia Temporarily Surpasses Apple in Market Value Amid Rising AI Stocks
Summary:
In an unexpected shift, U.S. chipmaker Nvidia briefly became the second most valuable company globally, surpassing Apple, due to a surge in market cap. However, Apple reclaimed its position soon after. Industry observers expect further changes on the leaderboard. Meanwhile, Apple seeks to bolster its AI sector, integrating OpenAI's ChatGPT into iPhones. Nvidia's continual growth is linked to the rising value of AI stocks, as its GPU chips are extensively used in AI development by industry leaders.
On the 5th of June, Nvidia, an American semiconductor company, briefly surpassed Apple to become the second most highly valued company globally, based on market capitalization, before falling back to third place. This shift was brought about because Nvidia's market cap increased to more than $3.01 trillion, coming impressively close to Microsoft's first place market cap of $3.1 trillion. But Apple quickly reclaimed its spot as the second most valuable company when the U.S. markets opened on the 6th of June, reaching a valuation of $3.007 trillion at the time of writing this article. Meanwhile, Nvidia's valuation currently stands at $2.973 trillion. Both Nvidia and Apple have reached their highest ever valuations, along with the NASDAQ and S&P 500, and further changes are anticipated in the coming days. Source: CompaniesMarketCap.comMicrosoft continues to hold its lead as the most valuable company ever by market cap, but with technology trends changing globally and the advent of new product launches, collaborations, and potential regulatory measures, the top spots on the leaderboard could see changes. A preview of Apple's Worldwide Developer's Conference, happening on the 10th of June, has led experts to predict numerous announcements related to artificial intelligence from the tech giant, potentially including a tie-up with OpenAI, the creators of ChatGPT. In relation to this, it's been reported that Apple is closing on a deal for integrating ChatGPT into iPhones. Multiple sources claim that Apple's management feels they're lagging behind Microsoft, which has already invested more than $13 billion in OpenAI, leading to rumors that Apple is making quick attempts to establish partnerships with OpenAI and other similar firms while recruiting AI professionals who previously worked at competitor companies like Google. On the other hand, Nvidia might be the biggest beneficiary of the rising value of artificial intelligence stocks in the 2024 market. Demand for the company's graphics processing unit (GPU) chips has been progressively growing, becoming the preferred hardware platform for AI development. Using Nvidia's chips are not just Microsoft and Google, but also other industry bigwigs like OpenAI, Amazon, and Elon Musk's AI portfolio, which includes Tesla and xAI.
Published At
6/6/2024 7:20:56 PM
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