Nvidia inches closer to overtaking Apple as world’s most valuable company

Nvidia hit a record high on Monday, edging closer to potentially overtaking Apple as the world’s most valuable company. The AI chipmaker’s shares surged 2.4%, closing at $138.07, fuelled by investors’ growing confidence in the demand for its next-generation processors. The latest stock jump pushed Nvidia’s market value to $3.39 trillion, just shy of Apple’s $3.52 trillion, but ahead of Microsoft’s $3.12 trillion.
Nvidia, a key player in the artificial intelligence boom, has benefitted immensely from the competition among tech giants like Alphabet, Microsoft, and Amazon, all striving to dominate the rapidly advancing AI space. Analysts at TD Cowen echoed this sentiment, emphasizing that the major companies involved in AI are trapped in a “Prisoner’s Dilemma”—where each must continue hefty investments to avoid being left behind.
Despite the delayed production ramp-up for its upcoming Blackwell chips, Nvidia assured investors that current AI chip demand remains strong. TD Cowen, in a report, reaffirmed its $165 price target for Nvidia and maintained the company as its “Top Pick.”
Earlier in June, Nvidia briefly claimed the title of the world’s most valuable company but was overtaken by Microsoft. Since then, the three tech giants—Nvidia, Apple, and Microsoft—have been in a close race, trading places in terms of market capitalisation for months.
As quarterly earnings season approaches, both Apple and Microsoft showed modest gains, with Apple rising nearly 2% and Microsoft adding 0.7%, helping propel the S&P 500 to a record high close. Nvidia, Apple, and Microsoft combined now account for roughly 20% of the index’s total weight, underscoring their significant influence over market movements.
In the coming days, Nvidia’s partner, Taiwan Semiconductor Manufacturing Co (TSMC), is expected to report a 40% increase in quarterly profit, driven by surging demand for Nvidia’s AI processors. According to analysts, the growing need for AI data centers is likely to more than double Nvidia’s annual revenue to nearly $126 billion.
While Nvidia’s remarkable rally has buoyed the broader market, some investors remain cautious, worried that enthusiasm for AI could wane if signs of a slowdown in spending on the technology begin to emerge. However, for now, Nvidia remains at the forefront of the AI revolution, inching ever closer to the top spot in the global market rankings.