Nvidia breaks records again and may soon surpass Apple

Nvidia’s shares rose about six percent last night compared to the previous day, reaching a record value of 1140 dollars on Wall Street, and the market value of this company reached 2.8 trillion dollars, just 100 billion dollars less than Apple, whose market capitalization is 2.9 trillion dollars.

This is a record increase in shares within a single day, and when compared to last week, Nvidia’s shares have risen nearly 13 percent since the company announced slightly better second-quarter earnings than investors expected.

The company’s shares have more than doubled this year, while they nearly tripled last year. Nvidia, riding the wave of artificial intelligence, reported a fivefold increase in revenue in the data center segment last week, while other tech giants like Alphabet, Microsoft, and Amazon compete for the limited supply of Nvidia’s chips to compete in the AI business.

There is increasing talk that Nvidia could ‘leapfrog Apple in market capitalization, supported by the fact that Apple has underperformed compared to other major tech companies in recent months, falling about two percent this year as it struggles with weak iPhone demand and fierce competition in China.

Microsoft surpassed Apple earlier this year on the list of the world’s most valuable companies, and this week, the tech giant’s shares fell by 0.4 percent, giving it a market value of 3.1 trillion dollars.

However, let’s return to Nvidia, whose success is impressive when compared to early 2020 when this company was valued at, in today’s terms, a ‘meager’ 145 billion dollars.

Since then, the company has significantly outperformed other American chip manufacturers like Intel and AMD, and the growth has been based on several factors. The first of these is the expansion into AI and data centers, as Nvidia’s chips are highly efficient for training artificial intelligence, making them essential for companies engaged in machine learning and generative artificial intelligence.

The second factor is the advancement in AI software, as the company has developed AI software platforms such as CUDA-X and TensorRT. All of this has, of course, resulted in strong financial results for which all investors are grateful to some higher power, given that Nasdaq reached record levels again this week, thanks to Nvidia.