Nvidia Surpasses Microsoft to Become World’s Most Valuable Company with $3.335 Trillion Market Cap
Nvidia’s stock price surged over 3% on Tuesday, making it the world’s most valuable company, surpassing Microsoft. The chipmaker’s shares increased by 3.5% to $135.58, boosting its market value by over $110 billion to reach $3.335 trillion. This comes just days after Nvidia overtook Apple to become the second most valuable company, according to Reuters.
Rapid Market Value Growth
Nvidia’s market value grew from $1 trillion to $2 trillion in just nine months as of February, and it took just over three months to hit $3 trillion in June.
Meanwhile, Microsoft’s stock price dropped 0.45%, with its market value at $3.317 trillion. Apple’s shares fell by over 1%, reducing its value to $3.286 trillion.
Nvidia’s stock has nearly tripled this year, compared to Microsoft’s rise of about 19%.
Last week, Nvidia split its stock 10-for-one, making its shares more attractive to individual investors.
AI Optimism Fuels Nvidia’s Rise
Nvidia’s impressive stock rally and rapid market value increase over the past year have been driven by optimism around Artificial Intelligence (AI) technology.
The rise in Nvidia’s shares has also boosted the S&P 500 and Nasdaq to record highs. Nvidia has become the most traded company on Wall Street, with average daily turnover of $50 billion, compared to around $10 billion for Apple, Microsoft, and Tesla, according to LSEG data. Nvidia now accounts for about 16% of all trading in S&P 500 companies.
Nvidia’s AI processors are seen as superior to competitors’ offerings, and high demand for these processors has resulted in limited supply. Many investors view Nvidia as the biggest beneficiary of the booming AI development, according to Reuters.
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