A foreign company is in the news for its dealings with an Indian company. Recently it was in discussions to do business with Tata Group and Reliance Industries. This company is NVIDIA, which is making history again. Nvidia became the world’s most valuable company thanks to a historic surge in its stock price on Friday.
Nvidia left Apple behind and once hit a record market capitalization of US$3.53 trillion, but ultimately closed at US$3.47 trillion. Data from the London Stock Exchange showed that Apple’s valuation closed at US$3.52 trillion, up 0.4% on the day.
The stock price rose so much in October
Nvidia’s growth is largely due to continued demand for its artificial intelligence chips, which are critical to the growing field of artificial intelligence. The achievement is an important milestone for NVIDIA, originally known for its gaming processors. The stock rose nearly 18% in October, driven by OpenAI’s latest $6.6 billion funding round and continued AI-driven investments.
The stock has been trending upward since last year.
Last year, Nvidia shares soared nearly 190% thanks to continued momentum in artificial intelligence and Nvidia’s dominant position in the market. Demand for data center chips also picked up on Friday after Western Digital reported better-than-expected quarterly profits, boosting optimism in the artificial intelligence industry.
Apple sales decline
Meanwhile, Apple, which tops the list of most valuable companies, is struggling with slowing demand for iPhones, especially in China, where its third-quarter sales fell 0.3%, while Huawei’s sales dropped a massive 42% . Apple will release its quarterly earnings report on Thursday, and analysts expect revenue to increase slightly by 5.55% to $94.5 billion. In comparison, NVIDIA expects revenue to grow about 82% year over year to $32.9 billion.
Nvidia’s success has not only boosted the technology industry, but also the entire U.S. stock market, as the combined influence of Nvidia, Apple and Microsoft accounts for about 20% of the value of the S&P 500 Index.
