Last Friday, Nvidia (NVDA) achieved a milestone by overtaking Apple (AAPL) as the world’s most valuable company. The chip supplier deserves it since its name is synonymous with the artificial intelligence boom.
Nvidia is the go-to supplier of chips that power AI servers. Blackwell is the latest chip that offers more power and uses less power than its previous generation chip. Nvidia’s pricing and marketing model for AI is similar to that of the PC gaming market. Gamers may settle for a budget or entry-level Nvidia GPU chip but still must pay more.
Both Intel (INTC) and Advanced Micro Devices (AMD) tried to compete with lower prices. However, they failed to take Nvidia’s market share.
Nvidia’s CUDA, introduced in 2006, is the proprietary standard. CUDA is deployed through thousands of applications. Over 500 million devices are CUDA-enabled.
Markets are increasingly viewing Apple as a mature firm with limited growth. Despite aggressive introductions of a VR headset, it is unable to offset its slowdown in iPhone sales. Warren Buffett, who manages Berkshire Hathaway (BRK-B), sold 56% of his stake in AAPL stock. Although he sold early and left money on the table, AAPL stock could keep falling. Fortunately, Apple will buy back $110 billion in shares, which will prevent the stock from falling by much.
Related Stories
