• Nvidia became the largest company in the world Monday, surpassing iPhone maker Apple
• Nvidia designs about 75% of the world’s AI accelerators, fueling demand for its chips amid the AI boom
• Nvidia’s net income soared from $2.3 billion in the first half of 2022 to $31.5 billion in the first half of 2024, driving an 850% stock rally over two years
Artificial intelligence kingpin Nvidia surpassed iPhone maker Apple as the largest public company in the world on Monday. This marks another major achievement for the Silicon Valley titan Nvidia.
Nvidia Briefly Topped Apple in October
Nvidia briefly surpassed Apple as the biggest company in the world on October 25, but had not ended a trading session as the largest firm since June.
Nvidia Dominates AI Chip Market
Nvidia designs about 75% of the world’s AI accelerators, the semiconductor technology powering generative AI applications like OpenAI’s ChatGPT chatbot. Demand has spiked for the graphics processing units produced by Nvidia as AI adoption grows.
Huge Growth for Nvidia
This “insane” demand has translated into a massive earnings uptick and stock market boom for Nvidia. Its net income rose from $2.3 billion during the first half of 2022 to $31.5 billion during the first half of 2024. Its share price is up 850% over the last two years.
Nvidia Stock Has Dipped Recently
Nvidia stock is actually down 4.8% from its all-time closing high set on October 21. But Apple shares are down 6.7% over the same period, leading to the flip in their market values.
Apple Beats Expectations, But Disappoints
In its earnings report last Thursday, Apple beat Wall Street expectations for revenue and adjusted profits. However, its weaker outlook for the final quarter of 2024 disappointed investors.
Apple Still More Profitable Than Nvidia
Apple’s financial performance is still far more robust than Nvidia’s, with much higher projected revenue and net income. But analysts expect Nvidia’s growth trajectory to continue, with its projected 2026 profits nearing Apple’s level.
Conclusion
Nvidia reaching the top spot highlights its rapid growth and dominant position in AI chips. While Apple remains hugely profitable, Nvidia’s future looks bright as AI adoption accelerates.
