Nvidia has ascended to become the world’s most valuable company on Tuesday, overtaking tech giant Microsoft as its advanced chips continue to dominate the market for artificial intelligence (AI).
Shares of Nvidia surged by 3.2% to $135.21, boosting its market capitalization to an impressive $3.326 trillion.
This milestone comes just days after the chipmaker surpassed Apple, the iPhone manufacturer, to become the second most valuable company globally.
Nvidia’s stock has skyrocketed approximately 173% this year, far outpacing the roughly 19% rise in Microsoft shares. This remarkable growth is driven by the soaring demand for Nvidia’s top-tier processors, which have become crucial in the rapidly expanding AI sector.
As tech titans like Microsoft, Meta Platforms, and Google-owner Alphabet vie to establish dominance in AI computing, Nvidia’s strategic positioning has given it a significant edge. The surge in its shares pushed Nvidia’s stock to an all-time high, adding over $103 billion to its market capitalization on Tuesday alone.
In an effort to make its highly valued stock more accessible to individual investors, Nvidia recently executed a ten-for-one stock split, effective June 7. This move has further increased the appeal of Nvidia’s shares among retail investors.
Nvidia’s market value has seen a meteoric rise, expanding from $1 trillion to $2 trillion in just nine months by February, and then taking just over three months to hit the $3 trillion mark by June.
