Riding On AI Boom, Nvidia Pips Apple To Become World's Most Valuable Company

In a significant shift, software and fabless giant Nvidia has overtaken Apple to become the world's most valuable company by market capitalisation, says a report by news agency Bloomberg. 

The semiconductor behemoth closed Tuesday's trading session with a market value of $3.43 trillion, edging past Apple's $3.38 trillion valuation.

Also read: Xiaomi India President Muralikrishnan B Steps Down

Nvidia's Growth Driven By AI Demand

The milestone comes on the back of extraordinary growth in Nvidia's stock price, which has surged approximately 850 per cent since late 2022. This development reflects the company's dominant position in providing chips crucial for artificial intelligence (AI) development.

This isn't Nvidia's first time at the top -- the company briefly claimed the top spot from Apple in June 2023, though that reign lasted just one day. Nvidia briefly dethroned Apple as the world's most valuable company late in October following a record-setting rally in the stock, on the back of insatiable demand for its specialised AI chips, reported Reuters.

Apple has recently entered the AI arena with its Apple Intelligence initiative, but Nvidia continues to maintain its position as a key supplier for major AI projects globally. 

However, the competitive landscape may be shifting -- reports indicate that OpenAI, the creator of ChatGPT, has been collaborating with Broadcom to develop alternative chip solutions.