Nvidia (NVDA.O) became the world’s most valuable company on Tuesday, dethroning tech giant Microsoft (MSFT.O) as its chips continue to dominate the artificial intelligence (AI) market. Shares of Nvidia surged by 3.2% to $135.21, boosting its market capitalization to an impressive $3.326 trillion. This milestone came just days after Nvidia surpassed Apple (AAPL.O) to become the second most valuable company globally as reported by Reuters.
The stock’s remarkable performance, with a 173% increase this year, far outpaced Microsoft’s 19% rise. The soaring demand for Nvidia’s high-performance processors, which are essential for AI development, has driven this unprecedented growth. Tech leaders like Microsoft, Meta Platforms (META.O), and Alphabet (GOOGL.O) are all striving to enhance their AI capabilities, fueling the race for market dominance in this rapidly evolving sector.
Nvidia’s share price reached a record high on Tuesday, adding over $103 billion to its market capitalization. The company further enhanced its appeal to individual investors by implementing a ten-for-one stock split, effective June 7. “A stock split can reduce the price per share, making it more affordable for individual investors. With Nvidia doing a 10:1 stock split, retail investors are the real winners here,” commented Sam North, a market analyst at investment platform eToro.
Nvidia’s market value has seen exponential growth, rising from $1 trillion to $2 trillion in just nine months as of February, and then reaching $3 trillion in a little over three months by June. This rapid ascent underscores Nvidia’s critical role in the tech industry’s future, particularly in AI development.
