Nvidia is now the most valuable company in the world, worth $3.34 trillion, beating out Microsoft to the top spot. This is due to its key part in the AI industry and rising demand for its chips.
Microsoft was surpassed by Nvidia as the world’s most valuable company on Tuesday. Its chips are still a key part of the race to rule the market for artificial intelligence.
The chipmaker’s market value rose 3.5% to $135.58, making it the second most valuable company in the world, just days after passing Apple to become the most valuable.
Before its rise, Nvidia was only known for making chips for video games. Now, it’s a world powerhouse. Because the tech industry is moving so quickly towards AI, Nvidia’s profits have gone through the roof. This is because big companies need Nvidia’s goods to build their AI systems. The company has grown faster than well-known tech companies like Apple and Google. This has led to a lot of investment and market speculation.
Wall Street hit a new record high thanks to Nvidia’s latest rise. The S&P 500 went up 0.3% to end the day at 5,487.03. So far this year, the stock has gone up about 180%, while Microsoft shares have only gone up about 19%. Microsoft, Meta Platforms, and Alphabet, which owns Google, are all rushing to improve their AI computing skills and take the lead in this new field.
Tuesday, the rise in shares made the stock reach a new high and raised Nvidia’s market value by more than $103bn. Nvidia recently split its stock 10 times for one penny, starting on June 7. This made its highly valued stock more appealing to individual buyers.
Nvidia’s Stock Split and Its Impact
The price of each share can go down after a stock split, making it easier for individual buyers to buy. Sam North, a market analyst at the investment site eToro, said that small investors are the ones who really benefit from Nvidia’s 10-to-1 stock split.
Many of the most popular AI tools, like OpenAI’s ChatGPT robot, are powered by Nvidia chips. Because of the company’s rising stock price and growing importance in its field, investors in Silicon Valley look forward to its earnings reports and other statements. The price of each chip has gone up to about $30,000 because more people want them, and the company has made a lot more money.
