Nvidia Stock Hits Record High, Set To Overtake Apple’s Market Value​

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Key Takeaways

  • Nvidia's stock hit $138.07 on October 14, fueled by strong AI demand.
  • This growth momentum could position Nvidia to overtake Apple as the most valuable company globally.
  • The stock has surged nearly 180% this year and has increased over nine-fold since early 2023.

Nvidia shares have hit a record high driven by strong AI demand positioning it to potentially surpass Apple as the world’s most valuable company.

Fueled by strong demand for AI processors, Nvidia’s stock rose 2.4% to close at $138.07, exceeding its previous high of $135.58 on June 18. The shares have gained nearly 180% this year and more than nine-fold since early 2023, as reported by CNBC.

This highlights Nvidia’s dominant position in the AI chip market, which, according to Mizuho Securities, controls an estimated 70% to 95%.

Nvidia’s stock increased 2.4% to close at $138.07 on October 14 | Source: Google Finance

Recent gains came after CEO Jensen Huang announced that Nvidia’s Blackwell chip is in total production and experiencing “insane” demand, reversing a previous selloff due to engineering delays. Morgan Stanley analysts noted that Blackwell orders are booked for about 12 months, suggesting strong business momentum.

Nvidia’s Rising Dominance in the AI Market

In June, Nvidia briefly became the world’s most valuable company with a market cap of $3.34 trillion after its share price soared to a record high, but Microsoft soon surpassed it. Now, Nvidia has emerged again as Wall Street’s top performer among major tech companies, including Alphabet, Microsoft, and Amazon, in the race to dominate emerging AI technology.

Nvidia’s latest gains have raised its market value to $3.39 trillion, positioning it just behind Apple’s $3.52 trillion and above Microsoft’s $3.12 trillion.

Meanwhile, Apple rose nearly 2%, and Microsoft gained 0.7%, contributing to a 0.8% increase in the S&P 500, which closed at a record high. The three tech giants collectively represent about 20% of the S&P 500’s weight, significantly influencing daily fluctuations.

Taiwan Semiconductor Manufacturing Co. (TSMC), which produces Nvidia’s processors, is expected to report a 40% increase in Q3 profit, driven by the AI boom and rising demand from clients like Apple and Nvidia.

Analysts project that investments in AI data centers will nearly double Nvidia’s annual revenue to about $126 billion, according to LSEG data. However, while Nvidia’s rally has propelled the S&P 500 to record highs, concerns remain that enthusiasm for AI may wane if spending slows.