In a wave that reflects rapid advances and growing interest in artificial intelligence, Nvidia It is reported that he is on the verge of overtaking apple As the second most valuable company in the world.
At the heart of Nvidia's rise is its dominant position in the high-end space. AI chip The company has an 80% market share and market demand for its AI capabilities is strong, Reuters reported on Friday (March 8).
This advantage is evaluation Take a leap. The company's value ballooned from $1 trillion to more than $2 trillion in just nine months. This is a feat. overtake Amazon, Googleparent company of alphabet and saudi aramcoaccording to the report.
As of Friday, Nvidia's market capitalization was nearing the $2.38 trillion level, $230 billion behind Apple and $645 billion behind the leader. microsoftsays the report.
While Nvidia is in the spotlight, Apple faces challenges, including giving up its biggest revenue due to weak iPhone sales. important company According to the report, it awarded the crown to Microsoft in January.
Nvidia's rise has helped push Wall Street stocks to record highs this year, with Nvidia now accounting for more than 5% of the benchmark S&P 500 index, the report said.
The company's stock price performance rose 95%, outperforming other large technology companies, according to the report.
“NVIDIA's rise reflects the incredibly strong fundamentals underlying its current business model.” Richard Mecklersaid partners at Cherry Lane Investments in a report.
david wagnerportfolio manager Aptas Capital Advisorsstates in the report: “We continue to believe that in five, 10 years, everyone will be talking about an industry that is much bigger than the numbers being bandied about today.”
Nvidia's earnings report released on February 21 put to rest any doubts about whether the recurring revenue will continue. The hype around AI PYMNTS reported at the time that this value would translate into actual tangible market value.
Nvidia founder and CEO during the earnings conference jensen fan “Accelerated computing and Generation AI A tipping point has been reached. Demand is rapidly increasing across companies, industries, and countries around the world. ”
For all of our coverage of PYMNTS AI, subscribe to our daily subscription AI Newsletter.