Overnight, Nvidia briefly reclaimed the throne as the most valuable company by market capitalization.

Thanks to strong demand for dedicated AI chips, on Friday, Nvidia's stock price hit a historical high, surpassing Apple to become the world's most valuable company. LSEG data shows that Nvidia's market capitalization once touched $3.53 trillion, slightly higher than Apple's $3.52 trillion. However, Nvidia's market capitalization fell slightly to $3.47 trillion at the close, up 0.8%, while Apple's stock closed up 0.4%, with a market capitalization of $3.52 trillion, overtaking Nvidia.

In fact, as early as June this year, Nvidia had briefly topped the global rankings, but was soon surpassed by Microsoft and Apple. The market capitalizations of these three tech giants have been neck and neck for several months, together accounting for about one-fifth of the S&P 500 index weight.

So far this year, Nvidia's stock price has soared by nearly 190%. In particular, Nvidia rose by about 18% in October, especially after OpenAI announced the completion of $6.6 billion in financing, its momentum became even more rapid. On Friday, data storage manufacturer Western Digital reported quarterly profits that exceeded analysts' expectations, further boosting optimism about data center demand, and Nvidia and other semiconductor stocks also experienced a wave of gains.

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AJ Bell Investment Director Russ Mould said:

"As more and more companies adopt AI in their daily operations, demand for Nvidia chips remains strong. As long as the U.S. avoids a major economic recession, people will expect companies to continue to invest heavily in AI capabilities, bringing strong growth momentum to Nvidia."

Meanwhile, Apple is facing weak demand for smartphones, and analysts expect its revenue to grow by 5.55% year-on-year to $94.5 billion for the upcoming quarterly results. In contrast, analysts expect Nvidia's revenue to grow by nearly 82% to $32.9 billion.

In addition, Nvidia's surging stock price has also increased the attractiveness of the stock to options traders. According to data from options analysis provider Trade Alert, Nvidia's options are among the most traded options in recent months.

Cherry Lane Investments partner Rick Meckler of the family investment office said:

"I think Nvidia itself also knows that in the short term, their performance may be very impressive."