Nvidia has surpassed Apple as the world's most valuable company after Apple hinted to investors that it may struggle to replicate the profitability of its flagship iPhone in future products.
Nvidia's market capitalisation reached $3.43 trillion (£2.66 trillion) at the close of trading yesterday, with its stock rising nearly 3% to overtake Apple's $3.38 trillion (£2.62 trillion) valuation. Microsoft ranks third with a market capitalisation of $3.06 trillion (£2.37 trillion), as reported by .
Nvidia's surge this year has been driven by strong demand for its graphics processing units (GPUs), which are essential for powering artificial intelligence (AI) across various sectors, including tech giants and healthcare.
The stock has also risen in pre-market trading following the news of Donald Trump's US presidential win.
This development comes after Apple's annual report warned of potential growth and profit margin challenges.
The report stated: "New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the company's business, results of operations and financial condition".
Additionally, the report highlighted new risk warnings related to "geopolitical tensions" and safety concerns surrounding emerging AI features.
Although Apple reported a 6% increase in revenue last quarter, its outlook for the current period fell short of analyst expectations.
The company has been grappling with low demand in China, a challenge that threatens its consumer hardware business, which has long been a significant source of revenue. Nvidia is set to announce its third quarter earnings on 20 November, with a projected revenue of approximately $32.5bn for the period, slightly above the analysts' consensus of $31.77bn, as per LSEG data.
Investors are expected to closely examine the results due to increasing market concerns about whether AI growth can justify the sky-high valuations and billions invested by companies such as Nvidia.
Despite reporting record-breaking revenue of $30bn (£22.7bn) in the second quarter, marking a 122 per cent increase from the previous year, the company's stock experienced a downturn in August.
