Chipmaker overthrows Apple and Microsoft as stock market boom pushes valuation over $3.34 trillion.
Nvidia surpasses IT giant Microsoft to become the most valuable company in the world as its processors remain at the forefront of competition to control the artificial intelligence sector.
Only a few days after surpassing Apple, the creator of the iPhone, to take second place in terms of value, the chipmaker’s shares rose 3.5% to $135.58, increasing its market capitalization to $3.34 trillion.
With its ascent, Nvidia has transformed from a startup known mostly for making video game chips into a major player in the world market. Due to the significant change in the IT industry toward artificial intelligence, which has left large corporations looking to Nvidia’s products to act as the backbone of the technology, its profits have increased.
The company’s expansion has outperformed that of other well-known tech brands, including Google and Apple, and it has stimulated a surge in investment and market speculation.
Wall Street reached a new record high due to Nvidia’s recent rise. The S&P 500 closed Tuesday at 5,487.03 after increasing 0.3%.
The stock has risen by over 180% this year, while Microsoft’s shares have increased by roughly 19%. This is because demand for the company’s top-tier CPUs is greater than supply. The computer behemoths Microsoft, Meta Platforms, and Alphabet, the owner of Google, are vying with one another to become the leaders in AI computing.
The spike in shares caused the stock to reach a new high and increased Nvidia’s market value by almost $103 billion on Tuesday.
As of June 7, Nvidia’s highly valued stock is now more appealing to individual investors thanks to a recent 10-for-one stock split.
A stock split may lower the price per share, lowering the purchasing cost for individual investors. Retail investors stand to gain the most from Nvidia’s 10-to-one stock split, according to Sam North, a market analyst at eToro, an investment platform.
Many of the well-known AI technologies in use today, such as OpenAI’s ChatGPT chatbot, are powered by Nvidia CPUs. The company’s earnings releases and announcements have become must-attend events for Silicon Valley investors due to its soaring stock price and growing importance within the industry. The company’s revenue has increased due to the increased demand for its chips, which has also caused the price per unit to soar to almost $30,000.
The 61-year-old CEO of Nvidia, Jensen Huang, has become one of the richest men in the world and has risen to a rare position among other industry titans as Nvidia’s influence inside the tech sector has expanded. His net worth has climbed by an astounding $93 billion over the last year and a half, bringing his total fortune to above $100 billion.
In just nine months, the company’s market worth increased from $1 trillion to $2 trillion in February, and it took slightly more than three months to reach $3 trillion in June.
