Nvidia has dramatically overtaken Microsoft to become the world’s most valuable public company. Earlier this month, Nvidia had surpassed Apple for the number two spot, and on Tuesday during trading, its shares surged by more than 3%, solidifying its new position.
The chipmaker’s stock has skyrocketed by over 170% this year, bolstered by its dominant position in the artificial intelligence (AI) sector, capturing 80% of the processor market. This latest surge pushed Nvidia’s market value to $3.326 trillion, up from $2 trillion in February.
Nvidia’s rapid ascent marks a significant milestone in the tech industry, where Apple had long held dominance since the launch of the iPhone in 2007. Microsoft briefly took the top spot earlier this year, partly due to its investment in OpenAI, a company known for developing ChatGPT and other generative AI technologies.
The recent surge in Nvidia’s shares was further boosted by a stock split earlier in June, which increased affordability and appeal among individual investors. Prior to the split, Nvidia’s shares were priced above $1,000 each.
In contrast, Microsoft’s shares have risen by only 19% year-to-date, a notable performance that pales in comparison to Nvidia’s extraordinary growth.
The demand for Nvidia’s processors continues to outpace supply, amid significant investments by tech giants like Meta Platforms and Google’s parent company in advancing AI computing capabilities.
Market analysts observed that Nvidia’s stock surge on Tuesday alone added over $100 billion to its market value, reflecting strong investor confidence and anticipation surrounding its future growth prospects.
Source: Sky News
