Positive Impact on Stock Prices from Dow Jones Inclusion and AI Demand Outlook
Artificial intelligence (AI) superstar Nvidia has surpassed Apple to become the company with the highest market capitalization.
Nvidia's stock price closed at $139.91 per share on the 5th (local time), the day of the U.S. presidential election, up 2.84% from the previous trading day.
The market cap rose to $3.43 trillion, making it the most valuable company in the world. This is the first time since June that Nvidia has topped the market cap rankings based on closing price.
Apple, which had held the number one market cap spot until the previous day, saw its stock price rise by only 0.65% on the day, resulting in a market cap of $3.38 trillion, losing the top position to Nvidia.
The rise in Nvidia's stock price is attributed to news that it will be included in the Dow Jones Industrial Average on the 8th. Additionally, explosive demand forecasts for its latest AI chips have also acted as a positive factor for Nvidia's stock. Investment bank William Blair raised its revenue and earnings estimates for Nvidia over the next two years, citing increased AI infrastructure investments by big tech companies. As a result, Nvidia is expected to continue a heated competition with Apple for the top market cap position going forward.
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