NVIDIA on Tuesday became the most market-valuable company in the world, overtaking tech giant Microsoft. This historian achievement is mainly due to the central role of its high-end processors in the field of artificial intelligence. On a particularly positive day, shares of the chip maker recorded an increase of 3.5%, reaching the price of $135.60 per share, which brought its market capitalization to $3.336 trillion, slightly exceeding Microsoft’s value of $3.325 trillion after a slight decline in its shares of 0.2%.
Just a few days ago, NVIDIA had overtaken the iPhone maker, Apple,previously second in the ranking, fell to $3.278 trillion in value following a 1.3% decline in its shares.
NVIDIA shares have risen about 173% this year alone, significantly higher than the 19% rise in Microsoft shares, as demand for its flagship processors continues to outpace supply. Tech giants such as Microsoft, Meta Platforms and Alphabet, owner of Google, are competing to expand their AI computing capabilities and appear to be still quite late at present.
The giant founded by Jensen Huang holds more than 80% of the market share for AI chips, making it a major beneficiary of the explosive development of artificial intelligence. Since he provided extraordinarily positive forecasts about a year ago, the company has consistently exceeded Wall Street’s lofty expectations for revenue and profiti, with demand for its graphics processors far exceeding supply.
NVIDIA executives said in May that demand for its Blackwell AI chips could outstrip supply”well beyond next year“. To increase the attractiveness of its highly valued stock among individual investors, NVIDIA recently executed a 10-for-one stock split, which became effective on June 7.
The company’s market value went from $1 trillion to $2 trillion in just nine months in February, and it took just over three months to reach $3 trillion in June.