The battle between tech giants Nvidia and Apple has been intensifying. Now, reports suggest that Nvidia could wear the cap of being the most valuable company in the world.
The company’s stock performance on October 15 increased by 2.8 per cent to $138.57. This was just below their all-time high of $140.76, which they reached on June 20 of this year. June was again the same time when discussions about Nvidia being the most valuable company increased.
The chip maker in fact did become the most valuable company for a short period of time when the market capitalization of the company became around $3.3 trillion. This made the company slightly ahead of Apple and Microsoft. The shares of the company at that time increased to $135.58 on June 18. The surge in the share prices as per analysts indicates that AI remains a personal favorite for investors. What was interesting was that this year the company added around $2 trillion of the value.
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As per media reports, a note by financial services firm Wedbush Securities says, “We believe over the next year the race to $4 trillion market cap in tech will be front and center between Nvidia, Apple, and Microsoft.”
As per Bloomberg, Daniel Ives, analyst at Wedbush Securities, highlighted, “We believe over the next year the race to $4 trillion market cap in tech will be front and center between Nvidia, Apple, and Microsoft.”
However, the most valuable tag was short-lived for the company. The company’s shares fell around 2 percent in early trade, with the cost per share being at $128 on June 21, 2024.
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With AI dominating the investment sector, top tech giants such as Alphabet, Microsoft, Amazon, and Nvidia have been having bottleneck fights. Founded in 1993, Nvidia is famous for processing graphics processing units (GPUs). With GPUs becoming in high demand due to their capability to accelerate graphics rendering and machine learning, the demand for the company has been increasing.
Bob Pette, NVIDIA’s vice president and general manager of enterprise platforms, recently said in an event as per the company’s blog post, “I’m just here to tell you that we’re designing our systems with not just performance in mind, but with energy efficiency in mind.”
Meanwhile, the company CEO, Nvidia CEO Jensen Huang, also recently reportedly said that the company is seeing an insane demand for its next generation Blackwell chips.
In a report on October 13, investment banking firm TD Cowen categorised Nvidia as the top pick and gave its $165 as the price target for Nvidia. As per Reuters, the company wrote in a note, "We believe the major companies in AI... face an investment environment characterized by a Prisoner's Dilemma—each is individually incentivized to continue spending, as the costs of not doing so are (potentially) devastating".
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