Nvidia overtook other technology companies on Tuesday to become the world’s most valuable publicly traded company in the latest sign of the strength of the artificial intelligence sector.
The chip company’s stock, which has witnessed a tremendous rise over the past eighteen months amid the flurry of generative artificial intelligence, jumped by 3.4% during today’s session, giving it a market value of about $3.3 trillion, slightly ahead of Microsoft and Apple.
The market value of Microsoft shares reached $3.325 trillion, with its shares declining 0.2%, while Apple shares fell 1.3%, bringing the company’s value to $3.278 trillion.
Nvidia shares have jumped about 173% since the beginning of the year, compared to a rise of only about 19% in Microsoft shares, with demand for its advanced processors exceeding supply.
Giant technology companies, Microsoft, Meta Platforms, and Alphabet, owner of Google, are racing to build their computing capabilities in the field of artificial intelligence and control the emerging technology.
Today’s rise in Nvidia’s stock added more than $103 billion to its market value.
NVIDIA accounts for more than 80% of the AI chip market, making it the main winner from the increasing development of this emerging technology.
Since its stunning forecasts nearly a year ago, the company has consistently exceeded Wall Street expectations for revenue and profits, with demand for its graphics processors far outstripping supply as companies rush to integrate artificial intelligence applications into their services.
Nvidia executives said in May that demand for its Blackwell AI chips could exceed supply “in the next year.”
To increase the attractiveness of its highly valued shares among individual investors, NVIDIA recently split shares by ten for one, effective June 7.
The company’s market value jumped from $1 trillion to $2 trillion in just nine months in February, while it took just over three months to reach $3 trillion in June.
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2024-06-20 12:21:20