Nvidia becomes world's largest company overtaking Apple, market cap crosses $3.43 trillion amid rise of AI

This is happening for the second time, with Nvidia previously becoming the largest company in June this year, although it held this record for only one day

Published on: Nov 6, 2024, 11:45:55 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Nvidia Corp. became the largest company in the world on Tuesday, November 6, 2024, with its market capitalisation of $3.43 trillion surpassing Apple's $3.38 trillion after shares rose 2.9% to $139.93.

Nvidia, the chip company, which has enjoyed a monumental ascent over the last 18 months amid enthusiasm over generative AI, jumped 3.4 percent near 1725 GMT, giving it a market capitalization of about $3.3 trillion, slightly ahead of Microsoft and Apple (Justin Sullivan/Getty Images via AFP)

This is happening for the second time, with the chipmaker previously becoming the largest company in June this year, although it held this record for only one day.

Also Read: Stock market’s 82% accurate US election signal favours incumbents. Here’s why

Meanwhile, Microsoft is in third place with a $3.06 trillion market cap. Nvidia overtook it just last month to become the second-largest company in the world, behind Apple at the time.

This underscores how dominant artificial intelligence (AI) has become on Wall Street, according to a Bloomberg report which added that Nvidia's shares rose more than 850% since the end of 2022.

“Over the past several quarters, it has felt like people basically care about inflation numbers, job numbers, and Nvidia numbers,” the report quoted Fall Ainina, director of research at James Investment Research as saying. “Nvidia overtaking Apple in market cap not only conveys that it is the biggest beneficiary of the AI infrastructure cycle, but it suggests people expect the AI boom will continue.”

Also Read: Zomato CEO Deepinder Goyal responds after ‘future dated’ mushrooms found at company's warehouse

Currently, Nvidia accounts for 7% of the S&P 500's weight and is responsible for around a quarter of its 21% gain this year.

This is also because Wall Street's biggest companies are heavily exposed to AI, such as Apple with its new AI-enabled iPhones, Microsoft, Amazon, Google, and so on.

The report says analysts expect its revenues to more than double in the current year and rise 44% during the year after.

The recent share price rise came after the company calmed investor concerns about issues with its Blackwell chip, which caused delays. Another reason is OpenAi releasing a new AI model with reasoning capabilities, which is something even Alphabet Inc. is also working on.

Also Read: UPI available for NRIs who want to make no-fee transactions with people in India: See details

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.