With a market capitalization of $3.5 trillion, NVIDIA (NVDA, Financials) is on the verge of becoming the world’s largest company, close behind Apple (AAPL, Financials), which has a market cap of $3.53 trillion. Additional competitive pressures are shifting toward Nvidia’s growing demand for artificial intelligence-powered supercomputing chips, making it a key driver in the technology battle.
It’s worth noting that Nvidia’s value is rising as AI becomes more widely used across various industries, also boosted by recent news about a $6.6 billion funding round in OpenAI. Nvidia’s chips, which power the training of cutting-edge models such as OpenAI’s GPT-4, are at the center of this change.
As before, changes in market cap leadership briefly helped Nvidia outpace other tech giants earlier this year. The current distance signals change at the top of the technology industry. Nvidia’s market performance continues to rise due to the growing need for certain AI capabilities. This means that surpassing Apple may not be a distant dream for Nvidia.
Nvidia’s performance was supported by strong growth from key partners such as TSMC, which saw its third-quarter profit fall by 54% due to increased demand for its AI chips. This economic climate helps explain Nvidia’s rise as organizations continue to look to artificial intelligence as a tool to optimize operations and growth.
From this perspective, Nvidia is responding to general trends prevalent across the artificial intelligence and machine learning industry, as experts including AJ Bell’s Russ Mold have pointed out, and is building a sustainable market. says it has the potential to sustain Nvidia’s growth. Nvidia is steadily moving closer to joining the prestigious list of the world’s most valuable companies, a feat that testifies to the company’s strategic direction and opportunity, as well as the growing relevance of AI technology. The community is watching this with great interest.
This article first appeared on GuruFocus.
