American software company Nvidia stock on Monday briefly overtook Apple for a brief period as the world’s most valuable company.
Nvidia’s shares rose on Monday propelling the chipmaker above Apple to claim the top spot on the list of the world’s most valuable companies.
Nvidia’s shares climbed as much as 2.6% Monday morning, giving Nvidia a market capitalization of more than $3.4 trillion, slightly more than Apple’s $3.37 trillion market value Apple shares dipped on Monday after slumping last week amid a tech sell-off and a disappointing quarterly profits.
Nvidia conceded the top spot late in the session when shares pared their gains to close just 0.5% higher.
The Race For Top Spot
Nvidia, Apple, and software and cloud computing giant Microsoft, have been vying for the title of the world’s most valuable company since the summer.
Nvidia’s stock was about a third of the size of Apple and Microsoft at the beginning of the year, when its market cap stood at $1.2 trillion. Since then, robust for AI has fueled the stock’s meteoric rise. Tech giants like Microsoft, Amazon , Google parent Alphabet , and Meta have committed to spending hundreds of billions of dollars this year and next on infrastructure, with much of that spending going toward the Nvidia semiconductors and servers required to train and run AI models.
The company’s stock hit a road bump in mid-July, when recession fears, rotation out of mega caps into small cap slots, and concerns about unsustainable AI spending sank tech stocks from their all-time highs. The cpmpany’s shares shed a quarter of their value between mid-July and mid-August, but rebounding optimism about artificial intelligence and the resilience of the U.S. economy has revived the stock’s historic bull run.
Addition to DJIA Index
Nvidia’s stock was named part of the Dow Jones Industrial Average (DJIA) on Friday. Nvidia is replacing rival chipmaker, Intel.
The reasoning behind the swap, S&P Dow Jones Indices said, was to “ensure a more representative exposure to the semiconductors industry.” Still, analysts believe this event won’t provide lots of traction in the long term.
The move will take effect before the market opens on Nov. 8, according to S&P Dow Jones Indices, which manages the index. Paint company Sherwin-Williams also joined the blue-chip index, taking the spot of chemical giant Dow.
Future Projections For Nvidia
The reason for Nvidia’s stock well-bid and growth is Nvidia’s ability to stay on top of all things AI. Nvidia has largely cornered the most important market in tech right now — artificial intelligence.
Artificial Intelligence is getting jammed into virtually every tech company that wants to stay relevant. And that’s driving Nvidia’s revenues to sky high places with shares of the Jensen Huang-led chip king up 182% year-to-date.
