In a surprising turn of events, Nvidia, Wall Street’s artificial intelligence poster child, has surpassed Microsoft as the most valuable company in the world. Nvidia’s market capitalization closed at roughly $3.34 trillion on Tuesday, edging past Microsoft’s $3.32 trillion value. Apple remains the third most valuable company in the US with a $3.27 trillion market cap.
Nvidia shares closed 3.5% higher on Tuesday, while Microsoft shares fell 0.5% and Apple shares lost 1.1%. Nvidia joined the exclusive group of US companies with a $3 trillion market cap earlier this month.
The chipmaker’s stock has soared over the last year and a half, driven by its unmatched chips that power artificial intelligence systems. Nvidia’s technology, including generative AI, has been a driving force behind its success. The company leads the tech behemoth Magnificent Seven stocks that have dominated the stock market since the AI frenzy took over Wall Street.
Jensen Huang’s leadership has been instrumental in Nvidia’s rise to the top, as the company’s stock surged roughly 174% for the year and was the S&P 500 index’s top performer in 2023. Nvidia’s dethroning of Microsoft comes as tech giants vie for the coveted top spot in the market.
Nvidia completed a 10-for-1 stock split on June 7 and recently boasted another impressive quarter, with a 262% increase in revenue and a 462% rise in profits year-over-year. The company’s success in the AI sector has solidified its position as a dominant force in the tech industry.
