In June of this year, for a short time, Nvidia already became the largest public company in the world by capitalization, but was later surpassed by Microsoft and Apple, with the latter nominally still retaining the corresponding status. However, during yesterday’s trading session, Nvidia’s capitalization momentarily rose to $3.53 trillion, surpassing Apple’s $3.52 trillion.
Image source: NVIDIA
The dynamics of the Nvidia share price by the end of the trading session were lost; they closed trading at a level corresponding to an increase of 0.8% relative to the previous session ($141.54), so at the moment the company’s capitalization does not exceed $3.47 trillion, while Apple remains at $3.52 trillion. Microsoft shares showed a similar increase, but the capitalization of this company did not exceed $3.18 trillion.
Nvidia shares are at risk of rising in value during the quarterly earnings period of its major clients, as some of them are expected to express confidence in maintaining the investment vector generated by the boom in artificial intelligence technologies. In October alone, Nvidia shares gained about 18%. This was largely facilitated by the startup OpenAI’s statements about raising $6.6 billion in its capital. It is generally accepted that the creators of ChatGPT will use a significant portion of these funds to purchase Nvidia computing accelerators. Western Digital’s quarterly reporting also added to investors’ confidence in maintaining the AI boom, which demonstrated high demand for drives for cloud storage and data processing systems, as well as server SSDs.
On Tuesday this week, Nvidia shares managed to reach their all-time high, amid optimism generated by the quarterly report of TSMC, a Taiwanese company that produces chips for Nvidia computing accelerators. In the company’s confrontation with Apple for the title of the most valuable issuer in the world, the second quarterly report, which will be released next Thursday, may be decisive. In the last quarter, Apple is expected to increase revenue by 5.55% year-on-year to $94.5 billion. Nvidia will report for the third quarter only in November, analysts predict an increase in its revenue by 82% to $32.9 billion. Although in absolute terms In terms of revenue, Nvidia is almost three times inferior to Apple, but in terms of growth dynamics it clearly surpasses it. Together with Microsoft, these two companies determine one-fifth of the S&P 500 stock index, so the dynamics of the entire American stock market largely depend on their “well-being.” Since the beginning of the year, Nvidia shares have increased in price by 186%, and so far there is no reason to believe that the vector of changes in their price will significantly deviate from the existing direction.