Nvidia Dethrones Apple as S&P 500's Most Valuable Company, Riding AI Chip Boom
Nvidia Surpasses Expectations, Reclaims Top S&P 500 Spot
Nvidia, the leading AI chip manufacturer, has once again exceeded Wall Street expectations with its latest quarterly results. The company reported a near doubling of revenue compared to the same period last year, driven by soaring demand for AI semiconductors.
The tech giant’s impressive performance has propelled its market value to $3.579 trillion, surpassing Apple to reclaim the top position in the S&P 500. This places Nvidia alongside Microsoft as the only company with market capitalizations exceeding $3 trillion.
Nvidia’s stock price has skyrocketed by 195% this year, with a $100,000 investment made two years ago now worth over $950,000. The company’s meteoric rise is further evidenced by its contribution to 25% of the S&P 500’s gain for the year as of October 31.
In terms of revenue, Nvidia’s data center business reached $30.8 billion for the quarter, marking a 112% increase from last year. Overall revenue rose 94% to $35.1 billion, significantly outpacing the expected 5.5% growth for S&P 500 companies.
Looking ahead, Nvidia projects fourth-quarter revenue to be between $36.8 billion and $38.3 billion, a substantial increase from last year’s $22.1 billion. Analysts estimate the company’s revenue for the fiscal year ending January 2025 to reach $126.5 billion, more than doubling its fiscal 2024 revenue and quadrupling the year prior.
As Nvidia continues its upward trajectory, investors are closely watching the performance of its new AI chip, Blackwell, to sustain this remarkable growth. The company’s recent replacement of Intel in the Dow Jones Industrial Average further underscores its growing influence in the tech sector.
With its current market value, Nvidia could theoretically purchase 54.6 billion Thanksgiving meals, based on a $65.51 meal cost estimate, highlighting the scale of its financial success.
Despite the overwhelmingly positive results, Nvidia’s shares dipped about 1% in after-hours trading following the earnings release, suggesting that some investors may be exercising caution in the face of such rapid growth.
