Nvidia set to overtake Apple as world's second-most valuable company

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The reliance of virtually all artificial intelligence applications on Nvidia's chips has helped the stock nearly triple in value over the past year to $2.72 trillion.

May 31 - Nvidia could soon surpass Apple to become the world's second-most valuable company, as the biggest beneficiary of the surge in adoption of AI applications takes on the iPhone maker that has been the largest Wall Street firm by market value for years.earlier this year as the once high-flying company grapples with weak demand for its iPhones and tough competition in China. It was last valued at $2.92 trillion.

"On the other hand, Nvidia has been able to catch wave upon wave of growth. Beginning with gaming demand, then crypto and now AI, they have been able to perfectly match innovation with demand and that equals explosive growth."and has been pivotal in driving U.S. stocks to record highs. It accounted for more than a third of the S&P 500's gains this year.

It traded at 37 times forward earnings, compared with 48 times earnings a year ago, LSEG data showed.The fund clocked $1 billion in daily turnover for the first time ahead of Nvidia's results last week and its total net assets have hit a record $2.82 billion this week, according to Lipper data.

 

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