Jakarta, Indonesia Sentinel — Nvidia stock reached a record high on Monday, October 14, bringing the company closer than ever to overtaking Apple as the world’s most valuable firm. The tech giant from Santa Clara posted a 2.4% growth in its share price, which closed at $138.07, equivalent to around Rp 2.1 million.
With this surge, Nvidia market capitalization climbed to $3.39 trillion, just shy of Apple’s market value of $3.52 trillion. This milestone intensifies the race between Nvidia, Apple, and Microsoft for the top spot in global market valuation. Back in June, Nvidia briefly held the title of the most valuable company in the world, surpassing Microsoft.
Nvidia’s skyrocketing valuation is largely driven by its leading role in the development of artificial intelligence (AI) technology. Nvidia’s AI chips, particularly its graphics processing units (GPUs), are considered critical to powering AI applications, from machine learning and data centers to autonomous vehicles and advanced robotics. Investors are increasingly betting on Nvidia stock as the company’s dominance in the AI chip market is expected to grow exponentially as AI becomes more integrated into everyday technology and business operations.
In recent months, these tech giants have continuously swapped positions as the world’s most valuable companies. Currently, Microsoft holds the third spot with a market capitalization of $3.12 trillion, according to Reuters on Tuesday, October 15, 2024.
Nvidia has emerged as a significant winner on Wall Street, especially amid the fierce competition in AI with other tech behemoths like Alphabet (Google), Microsoft, and Amazon. The company’s success is being driven by strong investor optimism surrounding its next-generation AI processors.
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In August, Nvidia announced that the production of its next-generation AI chip, Blackwell, would be delayed until the fourth quarter of this year. Despite this, customers have been scrambling to buy the currently available chips, further fueling Nvidia’s stock growth.
Nvidia’s CEO, Jensen Huang, has personally benefited from the company’s success. According to Forbes, Huang’s net worth has soared to $120.5 billion (Rp 1.877 trillion), making him the 11th richest person in the world.
Nvidia’s AI chips are increasingly seen as essential in the arms race among tech giants to dominate AI development. With AI projected to revolutionize industries from healthcare to finance, Nvidia’s market dominance in supplying the hardware critical for these advancements is a key factor in its soaring valuation.
(Raidi/Agung)
