Nvidia’s shares dropped nearly 3.4% on Thursday, losing its title as the world’s most valuable company to Microsoft. Earlier this week, Nvidia’s market value had surpassed Microsoft’s, but the recent decline saw Nvidia’s value fall to around $3.34 trillion, with shares priced at $131.88.
Tech Giants in the Race
Microsoft’s market value also dropped slightly to $3.30 trillion, with shares at $444.80, down 0.4% in the afternoon. Meanwhile, Apple, another major contender, had a market capitalization of $3.22 trillion, with shares falling 2.2% to $210.10.
In the tech world, Nvidia, Microsoft, and Apple are in close competition to be the most valuable company. Elon Musk recently announced that his AI startup, xAI, would use servers from Dell and Super Micro, which use Nvidia chips. This news had a small impact on Dell and Super Micro, whose shares fell 1% and 0.7%, respectively. Musk mentioned that developing the Grok AI model required about 20,000 Nvidia H100 chips, and future models would need even more.
Insight from Market Analysts
Jake Dollarhide, CEO of Longbow Asset Management, noted that Nvidia only profits from AI, while Microsoft both spends and earns money in AI. He emphasised Nvidia’s dominance in the AI market, joking, “You can’t spell Nvidia without AI.”
Nvidia’s stock has almost tripled in value this year, leading to significant gains in the broader market. Similarly, Super Micro’s shares have more than tripled, and Dell’s stock is up nearly 95%.
Sectoral Trends and Future Outlook
The Philadelphia Semiconductor Index has risen by nearly 34% since its recent low in April, reaching a record high on Tuesday.
Dan Ives, an analyst at Wedbush Securities, commented that the big tech companies will keep growing stronger with the help of AI technology. Companies like Microsoft, Oracle, Dell, and Amazon will benefit from AI in the enterprise sector, while Meta, Apple, and Google will see gains in the consumer market over the coming years.
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