On Tuesday, NVIDIA became the most valuable company in the world, surpassing tech giant Microsoft. This achievement was due to the critical role their high-end processors play in artificial intelligence. NVIDIA’s shares saw a significant increase of 3.5% in one day, reaching a price of $135.60 per share. This rise in share price brought NVIDIA’s market capitalization to $3.336 trillion, edging out Microsoft’s value of $3.325 trillion following a slight decline in their shares.
Recently, NVIDIA had surpassed Apple as second in the market after Apple’s value fell to $3.278 trillion after a 1.3% decline in share price. NVIDIA’s share price has surged by about 173% this year, outpacing the 19% rise in Microsoft’s shares, driven by the high demand for their flagship processors that continues to outstrip supply. Tech giants like Microsoft, Meta Platforms and Alphabet are all racing to expand their AI computing capabilities but still appear to be lagging behind.
NVIDIA commands over 80% of the market share for AI chips and is positioned as a major player in the rapid growth of artificial intelligence. The company has consistently exceeded Wall Street’s expectations for revenue and profits since providing optimistic forecasts about a year ago. Demand for their graphics processors has far exceeded supply with executives predicting that demand for their Blackwell AI chips could surpass supply well into the future.
To further appeal to individual investors, NVIDIA recently executed a 10-for-one stock split that became effective on June 7th
