Nvidia has overtaken Apple to become the world's most valuable company, thanks to a record surge in its stock driven by soaring demand for its new AI super-computing chips.
Nvidia's market capitalization briefly reached $3.53 trillion, while Apple's was at $3.52 trillion, according to LSEG data.
In June, Nvidia had briefly held the title of the most valuable company before being surpassed by Microsoft and Apple.
The market capitalizations of these tech giants have been closely aligned for several months, with Microsoft valued at $3.20 trillion.
Nvidia's stock has climbed around 18% in October, buoyed by OpenAI’s announcement of a $6.6 billion funding round, as Nvidia provides the chips necessary for training foundational models like GPT-4.
On Tuesday the 29th Nvidia's shares reached a record high, following a rally from the previous week when TSMC, the world's largest contract chipmaker, reported a staggering 54% increase in quarterly profit due to high demand for AI-related chips.
The upcoming challenge will be Nvidia's third-quarter earnings report in November. In August, the company projected third-quarter revenue of $32.5 billion, with an average analyst expectation of $32.90 billion.
In August, Nvidia's stock faced pressure after confirming delays in Blackwell chip production until the fourth quarter.
The shares of Nvidia, Apple, and Microsoft significantly influence both the technology sector and the broader U.S. stock market, collectively accounting for about 20% of the S&P 500 index.
The excitement surrounding AI, expectations of substantial interest rate cuts from the U.S. Federal Reserve, and a positive start to the earnings season have driven the S&P 500 to an all-time high last week.
Nvidia’s impressive gains have also attracted option traders, making its options among the most actively traded in recent months, according to data from Trade Alert.
The stock has surged nearly 190% this year, fueled by a boom in generative AI that prompted the company to issue several optimistic forecasts.