On October 25, 2024, Nvidia achieved a significant milestone by surpassing Apple as the world’s most valuable company. This transition was fueled by a remarkable surge in Nvidia’s stock value, which reached record highs, reflecting the increasing demand for its specialized chips used in artificial intelligence (AI) technology.

According to data from LSEG, Nvidia's market capitalization peaked at approximately $3.53 trillion, or Rp55,191.55 trillion, edging out Apple’s market value of $3.52 trillion. By the end of the trading day, Nvidia's market value settled at $3.47 trillion after an increase of 0.8%, while Apple’s stock also rose by 0.4%, keeping it in close contention.

Earlier this year, in June, Nvidia had briefly held the title of the world’s most valuable company before being overtaken by both Microsoft and Apple. The competition among these tech giants has been intense, with Microsoft currently valued at $3.18 trillion following a stock increase of 0.8%.

Nvidia’s success can be attributed largely to its dominance as a supplier of processors for AI computing. This positions the company as a key player in the ongoing battle among major tech firms, including Microsoft, Alphabet, and Meta Platforms, all vying to lead in this rapidly evolving technology sector.

Since its inception in the 1990s as a video game processor designer, Nvidia has seen a substantial increase in its stock, approximately 18% just this October. This uptick followed the announcement of OpenAI's impressive funding round of $6.6 billion, which further bolstered confidence in the market for AI technologies.

Nvidia’s stock, along with other semiconductor companies, received a boost on the same day after Western Digital, a data storage manufacturer, reported quarterly earnings that exceeded analysts' expectations. This report generated optimism regarding the growing demand for data centers, which are increasingly reliant on advanced AI capabilities.

On Tuesday, prior to the record highs, Nvidia’s shares soared after TSMC, the world’s largest chip manufacturer, reported a staggering 54% increase in quarterly profits, surpassing forecasts. This growth is largely attributed to the rising demand for AI-related chips, while Apple faces challenges due to weakening smartphone demand.

In China, iPhone sales dropped by 0.3% in the third quarter, contrasting with a significant 42% surge in sales for Huawei, Apple's primary competitor. The remarkable rise in Nvidia’s stock has also made it increasingly appealing to options traders, with the company’s stock options becoming among the most actively traded in recent months, according to data from Trade Alert.

Nvidia's stock has surged nearly 190% this year, driven by the explosive demand for generative AI technologies, resulting in a series of positive forecasts for the company. As AI continues to reshape the tech landscape, Nvidia's position at the forefront highlights its critical role in the future of technology.

CNBCINDONESIA.COM