Yesterday, Tuesday, the American chip maker Nvidia snatched the title of the most valuable company in the world, driven by the recent momentum of artificial intelligence.
The stock rose 3.5% to close at $135.58 per share on Tuesday, raising the company’s market value to about $3.3 trillion, surpassing Microsoft and Apple.
Earlier this month, Nvidia’s market value surpassed Apple for the first time since 2002, and the ranking of the world’s largest companies changed several times during the month, and last week, Apple briefly overtook Microsoft.
AI momentum
The latest ranking, with Nvidia topping the list of global listed companies, is another reminder that artificial intelligence is the primary focus for many investors, and Nvidia is seen as the largest and longest-standing beneficiary of the technology because it dominates the market with its highly sought-after chips that help data centers run computing tasks. The complexities required by artificial intelligence applications.
Microsoft is also seen as an early AI winner, given its investments and partnership with OpenAI, which created the GBT chat app.
This week, Apple’s stock rose after the iPhone maker finally revealed its plan to use the technology, bringing long-awaited investor satisfaction.
“We believe that the race to reach a $4 trillion technology market value over the next year will be between Nvidia, Apple and Microsoft,” Wedbush Securities analyst Daniel Ives wrote in a note.
Huang’s fortune
The rise in NVIDIA stock has increased the wealth of co-founder and CEO Jensen Huang nearly $75 billion since the beginning of the year to $119 billion, placing him in 12th place on the Bloomberg Billionaires Index.
“They don’t just sell chips, they sell systems,” Michael Lippert, vice president and portfolio manager at Barron Capital, said in an interview, referring to the company’s proprietary software and development ecosystem.
With its rapid rise, NVIDIA has broken records, and the company is one of the few companies that has shown significant growth in revenues from artificial intelligence, and the company’s stock rose by more than 170% in 2024 until yesterday’s close, Tuesday, adding more than two trillion dollars to its market value.
