Nearly all artificial intelligence apps, like ChatGPT from OpenAI, rely on Nvidia’s high-end hardware, which has contributed to the stock’s nearly threefold increase in value to $2.68 trillion over the past year.
On the other hand, Apple lost the top rank to Microsoft earlier this year as the formerly successful business struggles with China’s fierce competition and the lackluster demand for its iPhones. It was worth $2.92 trillion at the time.
“It is noteworthy since Apple has dominated several areas for such a long time, particularly in terms of growth and innovation. But as of late, it appears like Apple’s innovation curve has flattened down, indicating slower growth going forward, according to Brian Mulberry, client portfolio manager at Zacks Investment Management.
However, Nvidia has been able to keep up with the constant growth waves. They have been able to precisely match innovation with demand, which has led to tremendous expansion, starting with the desire for games and continuing with cryptocurrency and AI.
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The semiconductor company has played a key role in propelling U.S. stocks to all-time highs and is highly weighted on the Nasdaq and S&P 500. Over one-third of the gains made by the S&P 500 this year can be attributed to it.
Along with becoming the fastest-growing corporation from $1 trillion to $2 trillion in 2024, Nvidia surpassed Saudi Aramco, Amazon.com, and Alphabet, the parent company of Google.
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.
Options traders are bullish as Nvidia’s volumes, particularly for calls, has picked up in recent sessions after the surge in its stock price.
Thursday marked the fifth straight session where more than a million Nvidia call options changed hands, the longest such streak in the stock’s history, according to a Reuters analysis of Trade Alert data.