How Nvidia Overtook Apple To Become World's Most Valued Company

Nvidia surpassed Apple as world's biggest and most valuable company for second time. chip company's market cap rose 3 per cent to $3.43 trillion, while Apple settled for $3.4 trillion on Tuesday. Before this, Nvidia took over Apple to become most valuable publicly tred company for a brief time in June, riding on high chip demand in artificial intelligence-focused market.

company's shares have nearly tripled in 2024, boosted by investors who are confident about company's strategy to maintain its growth rate in chip business. Nvidia is world's leing supplier of graphics processing units, or GPUs, which power from a PC to a data centre to foundational langu models used in AI software such as OpenAI's ChatGPT. company's stock surged by over 2,700 per cent in last five years, while its revenue more than doubled in each of past five quarters.

But what does Nvidia do and how did it beat Apple in its game?

Founded in 1993 by engineers Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia aimed to disrupt gaming market through its proprietary 3D graphics customised for PC gaming. Its early products, such as RIVA series, were a runaway hit in gaming community. However, release of Nvidia's first GPU, GeForce 256, revolutionised gaming industry through its transformative and lighting (T&L) capabilities that boosted consumer-facing hardware and offered a high-gre visual experience on PCs.

Nvidia's popularity and market dominance picked up steam after company started focusing on AI chips. In 2006, it unveiled CUDA, a parallel computing platform and application programming interface (API) that allowed leveraging GPU's power for general-purpose computing. That opened new ways for different industries to rely on Nvidia's powerful GPUs where researchers, scientists, and technicians in or fields could harness parallel processing capabilities for complex tasks, such as deep learning and machine learning. This became foundation for AI companies, which used Nvidia's chips in data centres to handle massive worklos. Nvidia is one of biggest GPU and chip suppliers to AI industry.

demand for high-gre GPUs and chips for AI processes and handling related data centres propelled Nvidia to churn out more chips, causing a surge in company's business.

On or hand, Apple's focus on consumer-facing products could t reap benefits as much as Nvidia's deals with businesses. When Apple began building its artificial intelligence, it invested heavily into development of techlogies, with merely expectations that demand in market for AI could boost sales of iPhone and or products. However, re is guarantee Apple Intelligence would take off and bring returns. Meanwhile, Nvidia's investment into building AI-centric techlogies are paying off.

Nvidia is also working with a slew of Indian companies to build data centres and techlogies in country. Last year, chip company anunced a partnership with Reliance Industries to build AI infrastructure in India, which will help latter build India's own foundational langu models to boost local AI growth.