Nvidia sets a new milestone and may overtake Apple as the most valuable corporation.

 Nvidia sets a new milestone and may overtake Apple as the most valuable corporation

The heavyweight AI chipmaker Nvidia (NVDA.O) is on the verge of overtaking Apple (AAPL.O) as the most valuable business in the world after its shares ended at their highest point ever on Monday.
The Santa Clara, California company's stock increased 2.4% to close the day at $138.07 as investors placed bets on the high demand for its current and next-generation AI processors.

 
For a brief period in June, Nvidia was the most valuable corporation in the world. Microsoft surpassed it, and for some months, the market capitalizations of the three tech companies have been in close proximity to one another.

 

With the most recent gains, Nvidia's market worth increased to $3.39 trillion, which is slightly less than Apple's $3.52 trillion and more than Microsoft's $3.12 trillion.

 
The contest to dominate emerging AI technologies between Alphabet (GOOGL.O), Microsoft, Amazon (AMZN.O), and other major tech giants has seen Nvidia emerge as the greatest winner on Wall Street.
"We believe the major companies in AI ... face an investment environment characterized by a Prisoner's Dilemma — each is individually incentivized to continue spending, as the costs of not doing so are (potentially) devastating," TD Cowen analysts wrote in a study released on Sunday.

 

The "Top Pick" price target of $165 for Nvidia was reaffirmed by TD Cowen, which also stated that there was still a high demand for the company's current generation of AI chips.
Nvidia downplayed the impact, claiming that customers were grabbing hold of its current chips, but in August it acknowledged allegations that a ramp-up in manufacturing of the forthcoming Blackwell chips was postponed until the fourth quarter.

 
Microsoft added 0.7% and Apple increased nearly 2% as investors prepared for the quarterly reporting season. This helped the S&P 500 (.SPX) open a new tab up 0.8% to its own record high closing.

Since Nvidia, Apple, and Microsoft hold roughly 5% of the S&P 500's weight, they have a significant impact on the index's daily gains and losses.
On Thursday, Taiwan Semiconductor Manufacturing Co (2330.TW), the contract manufacturer that makes Nvidia's chips, is anticipated to report a 40% increase in quarterly profit due to the company's strong demand.

 
Analysts predict that Nvidia's yearly revenue will more than double to about $126 billion as a result of investments made to expand AI data centers, according to LSEG statistics.
Even while Nvidia's surge has caused the S&P 500 to reach all-time highs, investors are concerned that their euphoria regarding AI may fade if there are indications that spending on the technology is slowing down.