Nvidia (NASDAQ: NVDA) has held the position as the world's biggest company since about a year ago, when it became the first to reach $4 trillion in market value. It soared past former leaders Apple (NASDAQ: AAPL) and Microsoft. But in recent days, Apple, which hasn't climbed as much as its peers during the artificial intelligence (AI) boom, has been making a comeback.
And on July 17, Apple even slipped ahead of Nvidia to become — at least for part of the trading session — the world's biggest company. By the end of the day, though, Nvidia returned to the lead with a value of $4.9 trillion. That's compared to $4.89 trillion for Apple.
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As these tech giants vie for the position as the world's biggest company, which is the better buy now? Let's find out.
Nvidia stock has soared more than 300% over the past three years amid excitement about its position in the AI market. The company is the No. 1 designer of graphic processing units (GPUs), the chips used to power AI development and use. This strength, along with Nvidia's full portfolio of related products and services, has generated double- and triple-digit earnings growth in recent years.
For example, in the recent quarter, Nvidia's revenue surged 85% to more than $81 billion, and this was at a high level of profitability on sales, as we can see through the company's gross margin — that figure has exceeded 70% quarter after quarter.
Nvidia focuses on innovation, pledging to update its GPUs on an annual basis, and this has helped it stay ahead. The company has also steadily expanded its reach in order to make it the key place to go for anything AI. In the latest quarter, Nvidia announced the upcoming release of its first stand-alone central processing unit (CPU), a move that opens the door to a $200 billion market.
Investors have piled into Nvidia's stock in recent years, understanding that an investment in this company should put them on track to benefit from the AI revolution.
Apple shares have advanced — but not as much as those of Nvidia. Over the past three years, Apple has climbed about 70%. The company has been slower to invest in and apply AI than many of its peers — for example, it only began rolling out AI features across its devices in the fall of 2024, and the rollout continues. So, investors aiming to get in on potential AI leaders turned away from Apple and chose companies that were investing more aggressively in the space.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
