Nvidia(NDVA) Overtakes Apple And Become Most Valuable Company

Nvidia(NDVA) Overtakes Apple As The World's Most Valuable Company

So far Apple has been considered as the most valuable company. This supposition was correct to a great degree, as Apple was one of the biggest and undoubtedly most valuable companies. In the business world, things hardly remain constant. It is difficult to hold on to the number one position for a substantial period of time.

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We get to see plenty of changes. One such change has been the dethroning of Apple as the most valuable company by Nvidia with its market capitalization surpassing $3 trillion. You may be wondering how this is possible. What were the circumstances that led to such a major upset for Apple? We will provide you all the pertinent information as far as this topic is concerned. Kindly make it a point to express your views in regard to this article in the comment section.

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The primary factor in this case has been the boom in Artificial Intelligence ( AI) which has created a major demand for Nvidia's Graphic Processing Units ( GPUs) and other chipmaking technologies. If you see the growth achieved by Nvidia then you will have to say, it is simply stupendous. It has achieved a net income of $14.9 billion on revenue of $26 billion in the last quarter. If you don't find it colossal then we must also mention that its shares have experienced a meteoric rise, as it increased by a whopping 3,290 ℅ over the last 5 years.

The Primary Factors - Making Nvidia The Most Valuable Company

Three major elements have made it possible. Firstly, the boom in AI secondly, the advancement in chipmaking technologies by Nvidia and thirdly diversification by Nvidia into data centers and other emerging technologies have contributed largely to making Nvidia the most valuable company.

Nvidia's market capitalization now stands at $3.335 trillion, surpassing Microsoft's $3.32 trillion and Apple's $2.99 trillion. This goes on to reflect that Nvidia has been phenomenal and has adopted the right innovative approach as well as a strategic positioning in the world of tech business. We must incorporate the fact that in the month of June, Nvidia briefly became the world’s most valuable company before it was overtaken by Microsoft and Apple. The tech trio’s market capitalizations have been neck-and-neck for several months.

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Nvidia and other semiconductor stocks got a fillip after data storage maker Western Digital reported quarterly profit that beat analysts estimates, buoying optimism about data center demand. Since more companies are falling back on AI while doing their day-to-day official tasks the demand for Nvidia is pretty strong. This augurs well for Nvidia. The fact that a lot of other companies are all set to invest and strengthen their AI capabilities is an ideal situation for Nvidia. On the other hand,  Apple is struggling with tepid demand for its smartphones. iPhone sales in China slipped 0.3 percent in the third quarter.

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Shares of Nvidia, Apple, and Microsoft have an outsized influence on the richly valued technology sector as well as the broader US stock market, with the trio accounting for about a fifth of the S&P 500 index’s weight.

Conclusion

The business world is highly challenging and cut throat competition is always visible especially if the nature of business is technical in nature. It's not easy to overthrow a tech giant and become a business leader. Nvidia has taken all the right steps in order to make its own name in this competitive business world.

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