Optimism about tech and expectations of interest rate cuts by the US Federal Reserve and other central banks have fueled a surge in tech stocks. This AI boom has driven Microsoft, Nvidia, and Apple to record highs.
These three tech giants now have a combined market value of about $9.2 trillion, surpassing the nearly $9 trillion worth of stocks traded on Chinese exchanges, excluding Hong Kong, according to Bloomberg.
Investors are confident in Microsoft, Apple, and Nvidia due to their strong competitive positions, high profit margins, and solid balance sheets.
Nvidia’s Market Value Soars
Nvidia, the second most valuable company in the world, reached a market value of $3 trillion this week. Its stock rose 5.2% to $1,224.40 on Wednesday and continued to climb in premarket trading on Thursday. Nvidia is planning a 10-for-one stock split starting June 7, which could attract more individual investors. Nvidia’s stock has surged 147% so far in 2024.
Microsoft’s AI Ambitions
Microsoft is pushing to lead the AI market by integrating AI features into its products and services. It recently announced plans to release a new AI model called GPT-4o with realistic voice interaction capabilities. Microsoft, the world’s most valuable company with a market capitalization of $3.15 trillion, saw its stock climb 1.9% on Wednesday.
Apple’s Market Position
Apple’s market value reached $3.003 trillion after its stock climbed 0.8%. While Nvidia benefits from the AI excitement, Apple faces weak demand for iPhones and strong competition in China.
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