Nvidia (NVDA) hit a record-high closing price of $138 on Monday, rising by 2.4%. The surge represents a 1.78% rise from the company’s previous high of $135.58, which it attained in June of this year. The company’s latest surge could take it ahead of Apple to become the most valuable company in the world. But which stock should you buy?
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Why Is The Chip Maker’s Stock Surging?
Source: AnalyticsInsight
NVDA’s price rose sharply in October, experiencing six consecutive days of rallies at one point. The company’s stock began to rise on Oct. 2 after announcing a $6.6 billion funding round for OpenAI, the firm behind the popular ChatGPT AI chatbot. Many expect most funds to be funneled to Nvidia as OpenAI’s demands for more AI chips increase.
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According to a report by KeyBanc, the chip maker’s revenue from its Blackwell chips may surpass the $7 billion mark in the fourth quarter of this year. KeyBanc further highlighted that demand for the company’s older chips also remains robust.
Nvidia Vs. Apple: Which One Should You Buy?
Source: Inc.Magazine
Nvidia’s (AAPL) market cap is about $3.4 trillion, while Apple’s (AAPL) is about $3.52 trillion. Over the last year, Apple, Nvidia, and Microsoft have battled for the top spot.
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Given the high growth in the AI sector, NVDA’s price may continue to surge as the AI industry takes center stage. According to Patrick Moorhead, CEO of Moor Insights and Strategy, “I see continued growth in the AI data center trades for the next 12 months.“
If the growth rate continues, Nvidia may soon overtake Apple and become the world’s most valuable company again. That said, both companies are equally primed for massive returns. The tech industry has grown incredibly over the past decade and a half. However, given the recent rise in AI-related innovations, Nvidia may have the upper hand.