Nvidia's market cap nears Apple's as AI gold rush pushes shares to new highs

Nvidia's market cap nears Apple's as AI gold rush pushes shares to new highsNvidias shares closed at a new all-time high on Monday, as investors anticipate the earnings season and major clients unveil their latest plans for investments in AI infrastructure. The stock rose 2

Nvidia's market cap nears Apple's as AI gold rush pushes shares to new highs

Nvidias shares closed at a new all-time high on Monday, as investors anticipate the earnings season and major clients unveil their latest plans for investments in AI infrastructure. The stock rose 2.4% on Monday to close at $138.07 per share, exceeding its previous all-time high of $135.58 set on June 18. The stock has risen almost 180% this year and more than 9 times since the beginning of 2023.

Nvidia is widely recognized as the tool provider in the "AI gold rush." Since OpenAI publicly released the chatbot ChatGPT in November 2022, Nvidia has emerged as the biggest beneficiary of this AI wave. Nvidia's GPU chips are used to develop and deploy advanced AI models, powering ChatGPT and similar applications. Companies like Microsoft, Meta, Google, and Amazon are all heavily purchasing Nvidia GPUs to build increasingly large computer clusters to support their advanced AI work. These companies are all set to report their latest quarterly results by the end of October.

Mizuho analysts say top tech companies are spending billions of dollars each year on AI infrastructure, and a significant portion of that is going to Nvidia. The company controls about 95% of the AI training and inference chip market. In the past five quarters, Nvidia has more than doubled its revenue in each quarter, with three of those quarters seeing at least a threefold increase.

According to data, Nvidia's growth rate is expected to slow down in the remainder of the year, with analysts expecting the company to report a revenue increase of about 82% in the quarter ending in October, reaching $329 billion. Nvidia recently said that demand for its new-generation Blackwell architecture AI GPU chips is "extremely robust," with an expectation that the new products will generate billions of dollars in revenue in the fourth quarter.

Currently, Nvidia has a market cap of $3.4 trillion, making it the second-largest publicly traded company in the United States, only behind Apple with a market cap of around $3.55 trillion.