30s Summary
Nvidia has overtaken rivals Apple and Microsoft to become the world’s most valuable company, after its stock jumped 2.84% on October 5, increasing the company’s total market value to $3.43 trillion. This is despite Apple and Microsoft’s more turbulent year, with weak forecasts, poor Q4 earnings, and mounting trade anxieties affecting their stock value. Meanwhile, Nvidia continues to enjoy a strong year, with its stock nearly tripling thanks to robust sales growth and investment in speedy computing and AI technology.
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Nvidia, a giant in AI technology, has just reclaimed its spot as the most valuable company worldwide. This happened after its stock jumped nearly 3% on October 5, edging past rivals Apple and Microsoft.
For context, Nvidia shares went up around 2.84% on that day, driving the company’s total market value to a whopping $3.43 trillion. This was more than Apple’s $3.38 trillion and Microsoft’s $3.06 trillion.
Apple stocks haven’t quite bounced back from a disappointing end to October, when their sales forecast turned out to be weaker than expected. Their Q4 earnings also underperformed. Microsoft, meanwhile, experienced one of its worst trading days in two years after slashing its Q4 projections for 2024.
On the other hand, Nvidia has had a stellar year, with its stock almost tripling thanks to strong sales growth and continued investment in speedy computing and generative AI. The company first overtook both Apple and Microsoft back in June to become the most valuable company – though only for a day. Despite this brief victory, its stock has seen a solid increase of 9.5% over the past month and an impressive 190% since the start of the year. As of now, it’s trading at $139.91, according to Google Finance.
If you’re not familiar with Nvidia, they’re basically experts at making computer chips and graphic processing units that power all kinds of computer applications – including artificial intelligence.
Back in 2024, UBS, an asset manager, predicted AI revenue to reach $420 billion by 2027, showing a compound annual growth rate (CAGR) of 72%. In a letter to investors at the start of the year, UBS researchers compared the AI industry’s progress to the “iPhone moment.” They mentioned the increasing infrastructure spending, emerging trends like GPU cloud and AI edge-computing, and the overall growth in AI applications and models. According to them, AI will remain a key driver of global tech stocks throughout 2024 and the rest of the decade.