Nvidia, an American computer chip manufacturer, has recently reached new heights as the world’s most valuable company. On Tuesday, its stock price rose by over 3%, reaching an all-time high of nearly 136 dollars. This surpassed Microsoft as the most valuable company, a position that Nvidia had held earlier in the month after overtaking Apple in valuation.
Nvidia is renowned for being a key player in the development of computer chips necessary to power artificial intelligence (AI) software. With the rise of generative AI products like ChatGPT, demand for Nvidia’s products has skyrocketed, leading to increased sales and profits. The growing focus on AI technology from major tech companies has further fueled investor expectations for Nvidia’s earnings, driving up its share price even further.
On Tuesday, Nvidia’s valuation reached 3.34 trillion dollars (£2.62 trillion), representing a staggering 180% increase from the beginning of the year. The steady growth in demand for AI technology and Nvidia’s position as a leading provider of necessary computer chips have contributed significantly to its recent success in the market. Investors are optimistic about the company’s future earnings potential, which has propelled Nvidia to the top spot as the most valuable company in the world.
