Nvidia, the leader in AI chip technology, reclaimed its title as the “most valuable company in the world” on the 4th, overtaking Apple in market capitalization.
At 11:52 AM Eastern Time (8:52 AM Pacific) on the New York Stock Exchange, Nvidia’s stock rose by 2.26% from the previous trading day, reaching $138.46 (equivalent to 190,313 KRW). Its market cap swelled to $3.396 trillion, surpassing Apple’s $3.346 trillion as Apple’s stock declined by 0.69% during the same time.
This marks Nvidia’s return to the top market cap spot just 10 days after briefly reaching the top on October 25, when it ended the trading day in the second position.
Nvidia opened the day trading up by over 1% at $137.23 and maintained its lead in market cap from early trading.
Analysts attribute Nvidia’s surge to its inclusion in the Dow Jones Industrial Average, a major U.S. stock index. On the 1st, S&P Dow Jones Indices announced it would replace Intel with Nvidia in the Dow Jones index. The Dow consists of 30 prominent companies representing major U.S. industries.
When a company is added to a prominent index, it often sees a positive boost in its stock price as index-tracking funds typically buy shares of companies included in the index.
In contrast, Apple’s stock price has seen declines, affected by reports that Warren Buffett’s Berkshire Hathaway sold additional shares. Berkshire, which had already sold half of its Apple holdings by the second quarter, reportedly sold an additional 25% in the third quarter.
Further downward pressure on Apple’s stock came from forecasts that its fourth-quarter (October to December) revenue may slightly miss market expectations.
