Can you guess which company has replaced Apple as the most valuable publicly held U.S. firm?
Quick. Name the most valuable publicly traded U.S. company. You might think that this is an easy question and right away you blurt out "Apple." But are you confident enough in that answer to put some money down on it? Alright, I'm going to tell you now that Apple is incorrect. If I allowed you to pick again, would you still feel confident enough to make this a cash wager?
Before you answer, let me tell you that Microsoft is also an incorrect response. Now I see you putting your wallet back in your pants pocket. The most valuable publicly traded U.S. firm is a company that is benefiting from the boom in AI. With a valuation of $3.62 trillion as of Friday's close, the most valuable publicly held U.S. firm is AI chipmaker Nvidia. The latter has a stock trading at $147.63 up an amazing 205.4% year-over-year. Over the last five years, Nvidia's stock is up an incredible 2,744.51%.
Nvidia is worth more than six well known companies combined
To show you just how valuable Nvidia is, the $3.62 trillion valuation of the company makes it more valuable than Eli Lilly, Walmart, JPMorgan ,Visa, UnitedHealth Group, and Netflix combined.
Over the last five years, Nvidia's stock has risen 2744.51%. | Image credit-Yahoo Finance
You might remember back in 2018 when Apple edged out Amazon to become the first U.S. public company to reach a valuation of $1 trillion. Almost exactly two years later, the gang at Cupertino celebrated becoming the first to $2 trillion getting there before Microsoft. In January 2022, Apple completed the hat trick by becoming the first U.S. publicly traded company to reach a valuation of $3 trillion. Now, Nvidia is the closest to $4 trillion with Apple next carrying a $3.43 trillion valuation.
Nvidia does have some competition and investors who want an AI play in their portfolio besides Nvidia can buy Google parent Alphabet. Google has its advanced Gemini AI model. Microsoft is another AI play as it is a large investor in ChatGPT parent OpenAI. Both of those firms are among the most valuable public companies in the U.S. with Microsoft currently worth $3.14 trillion (that's a lot of money for Pi) and Alphabet valued at $2.19 trillion. We wouldn't be surprised to see OpenAI decide to go public at some point in the future.
Nvidia is scheduled to release its third quarter earnings on November 20th and analysts are forecasting an 80% hike in quarterly revenue to $32.9 billion. The company's shares also added some prestige by replacing Intel as a member of the Dow Jones Industrial Average. This is the index of 30 stocks that collectively is known as "the market." When you hear someone on television crow about the market being up or down, it is the Dow Jones Industrial Average that they are referring to.
Nvidia joins tech bellwethers Apple, Microsoft, and Verizon in the Dow 30
Being added to the index is not just prestigious for Nvidia, it is also a sign that AI, as an investment and a tool, has become more mainstream. The 30 stocks in the Dow Jones Industrial Average are all famous names indicating the importance of both Nvidia and AI. The index is made up of the following stocks:
- Apple
- Microsoft
- Walmart
- JPMorgan Chase & Co
- VISA
- UnitedHealth Group Incorporated
- HOME DEPOT, INC
- PROCTER & GAMBLE Co
- Johnson Johnson
- Salesforce
- Chevron
- COCA COLA
- Merck & Co., Inc
- CISCO SYSTEMS, INC
- MCDONALDS: MCD
- AMERICAN EXPRESS COMPANY
- INTERNATIONAL BUSINESS MACHINES CORPORATION
- CATERPILLAR
- GOLDMAN SACHS GROUP INC
- WALT DISNEY CO
- Amgen
- Verizon Communications Inc
- Honeywell International Inc
- NIK
- Nvidia
- BOEING
- 3M
Besides designing AI chips, which are built by leading contract chip manufacturer TSMC, Nvidia became the leading designer of GPU chips for gaming computers and computers for data centers. It's mobile GPUs are used on tablets and gaming devices.
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