The GPU technology company Nvidia (NVDA, Financial) has surpassed Apple (AAPL, Financial) once again as the most valuable company globally, with its market cap rising to $3.44 trillion. This recovery of Nvidia, which grew by 2.4% on Tuesday’s trading session, surpasses Apple, which is now at $3.37 Trillion, though Apple’s shares elevated by a modest 0.6%.
The fight for the title of the most valuable player this year has been intense, especially with Nvidia, Apple, and Microsoft (MSFT, Financial) being the only firms with market capitalizations above $3 trillion. Microsoft also gained about 1.5% on Tuesday, lifting its market value to nearly $3.08 trillion.
The Atlanta-based company has seen its market value soar due to the ever-growing need for its chips, which are crucial in AI technology. Such a dynamic has been observed this year, partly due to investments made by leading technology corporations such as Meta (META, Financial) and Alphabet’s (GOOG, Financial) Google in AI-friendly Nvidia, which further boosted the corporation’s revenues and stock market valuation to great heights.
William Blair analysts have lifted their average revenue estimates for Nvidia for the next two financial years and average profit expectations. Such optimism is derived from comments made by application software and tech spending executives in recent earnings calls, where they anticipate increased growth of AI infrastructural expenses in the next year.
Nvidia has been one of the most spectacular growth stories, pointing to its relevance for the advancement of AI and showing the new dynamics of the tech industry where AI and machine learning capabilities are beginning to dominate future growth strategies.
This article first appeared on GuruFocus.
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