Nvidia, an American multinational technology company, has overtaken Apple to become the world’s most valuable company, according to data from the London Stock Exchange Group (LSEG).
In an exciting new venture, Nvidia has announced plans to invest US$200 million (Rp3 trillion), to establish an Artificial Intelligence (AI) center in Solo (Surakarta), Central Java.
This center will be situated in the Solo Technopark, a science and technology hub in Surakarta, and marks Nvidia’s expanding presence in Southeast Asia alongside existing AI centers in Malaysia and Singapore. Construction is set to begin this year.
Russ Mould, investment director at AJ Bell, noted that Nvidia is well-positioned to benefit from the rising global integration of AI into daily business operations.
“If the U.S. avoids a major economic downturn, we can expect companies to continue investing heavily in AI capabilities, benefiting Nvidia’s growth,” Mould said on Friday, October 25, 2024.
With a market capitalization reaching US$3.53 trillion, Nvidia has outpaced Apple, which stands at US$3.52 trillion.
The chipmaker’s stock recently surged by 0.8 percent on Saturday, October 26, 2024 highlighting its rapid growth, largely driven by increasing demand for artificial intelligence (AI) technologies.
Nvidia’s rapid ascent in market value is attributed to the surging demand for AI chips, propelling its capitalization from US$2 trillion to US$3 trillion in just 96 days.
This swift growth contrasts with other tech giants like Microsoft, which took 945 days to reach the US$3 trillion mark, and Apple, which took over 1,000 days.
Meanwhile, Apple has faced a slowdown in iPhone demand, especially in China, where sales dropped 0.3 percent in the third quarter, while Huawei’s market share increased by 42 percent.
Apple is scheduled to release its quarterly earnings on Thursday, October 31, 2024 with analysts predicting a 5.55 percent year-on-year revenue growth to US$94.5 billion.
Looking ahead, Nvidia’s revenue is expected to grow nearly 82 percent to US$32.9 billion. LSEG estimates that the company’s fiscal 2024 revenue could more than double to US$120 billion, with projections reaching US$160 billion by 2026, indicating sustained strong growth in the AI-driven semiconductor sector.
