Nvidia surpassed Microsoft on Tuesday to become the world’s most valuable company, driven by its essential role in the competition for artificial intelligence dominance.
With a 3.5% increase in its shares to $135.58, Nvidia now has a market capitalization of $3.34 trillion, following its recent surpassing of Apple to become the second-most valuable company.
Originally known for making video-game chips, Nvidia has evolved into a global powerhouse, benefiting from the industry’s shift towards artificial intelligence and becoming a go-to supplier for tech giants.
Outperforming industry giants like Google and Apple, Nvidia’s growth has spurred investment and market interest.
The company’s success has contributed to record highs on Wall Street, with the S&P 500 closing at 5,487.03 on Tuesday.
Nvidia’s shares have soared by approximately 180% this year, significantly outperforming Microsoft’s 19% increase, driven by high demand for its cutting-edge processors.
Tech leaders like Microsoft, Meta Platforms Inc., and Alphabet Inc. are in a race to bolster AI computing capabilities and dominate emerging technologies.
The surge in Nvidia’s stock price has pushed its market capitalization to new heights, adding over $103 billion on Tuesday alone.
By splitting its stock 10-for-1 on June 7, Nvidia aimed to make its highly-valued stock more accessible to retail investors.
Nvidia’s chips, utilized in crucial AI tools such as OpenAI’s ChatGPT chatbot, have driven its revenue and stock price up, arousing increased investor interest in Silicon Valley.
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As Nvidia solidifies its presence in the tech sector, CEO Jensen Huang, aged 61, has ascended to the ranks of the world’s wealthiest individuals, with a net worth exceeding $100 billion.
In less than two years, Nvidia’s market capitalization has jumped from $1 trillion to $3 trillion, marking a remarkable growth trajectory.
Reuters assisted with reporting.
Source: www.theguardian.com
