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Nvidia (NVDA, Financial) has regained the top spot as the world's most valuable company, with a market capitalization of $3.46 trillion, above Apple (AAPL, Financial) $3.35 trillion. On Tuesday's trading, Nvidia rose 2.2 percent, and Apple fell 3.1 percent, sharply due to analyst downgrades, citing poor iPhone sales and a lacklustre consumer electronics market.
The fact that AI is dominating the decisions around this historic shift demonstrates why it will take over the economic world. Nvidia's rise is part of a surge in demand for the company's graphics processing units, or GPUs, which are critical for powering AI applications in autonomous vehicles, data centres and other high-growth sectors.
Nvidia exceeded 100 percent earnings growth for its third quarter of 2024, along with a 94 percent jump in revenue to $35.1 billion. These results underscore how the company is a key enabler of AI transformations in industries.
Nvidia CEO Jensen Huang said: "Our GPUs are driving the AI-driven transformation across industries." AI is at the heart of every business, and we are entering a new era of computing.
Overall, the slowdown in these markets is illustrative of broader strategic issues impacting consumer electronics companies. The company has lost money, with their market cap down to $3.33 trillion compared to a high just a few months ago.
This article first appeared on GuruFocus.