Nvidia enjoys great investor confidence. Shares closed Monday at their highest point ever. The chip giant is quickly becoming the most valuable company in the world and knocking Apple off its throne.
Investors have high hopes for the upcoming financials for the third quarter of this year, Reuters writes. As a result, Nvidia’s shares rose to a record high yesterday, rising 2.4 percent to $138.07 (€126.52) per share.
The rise has now brought Nvidia’s market value to $3.39 trillion, just slightly less than the world’s current most valuable company, Apple, which has a market value of $3.52 trillion. Microsoft, which also has a hefty market value, currently has a total company value of $3.12 trillion.
Taking the baton from Apple
Thanks to investor confidence, Nvidia seems to be getting ready to bump Apple from first place soon. This is not the first time Nvidia has been considered the most valuable company in the world.
In June, Nvidia briefly achieved this position before being relieved by Microsoft. So, the race for the world’s most valuable company is clearly between Nvidia, Apple, and Microsoft.
Continuing demand for AI chips
The main reason investors are embracing Nvidia so much is the growing demand for AI chips, particularly chips and GPUs.
In August, Nvidia announced it was ramping up production of its latest generation of Blackwell GPUs, but this has since been axed again. Many customers are now rushing to buy up existing GPUs, which does not seem to be hurting confidence in the company.
In addition, the expected growth in AI data centers may double Nvidia’s annual revenue to nearly $126 billion this year.
Not only Nvidia benefits from the increased demand for products and the associated new investments. Related companies, such as TSMC, are also reaping the benefits of continued demand for AI chips. Due to the huge demand, the Taiwanese chip maker expects up to 40 percent more quarterly profit.
Also read: Nvidia books record sales again and promises Blackwell is coming this year