ALBAWABA – Nvidia just crossed Microsoft to become the world’s most valuable publicly traded company as investors eye the tech giant dominating the boom of Artificial Intelligence tech.
Nvidia's stock price rose by 3.5% to $135.58, while the chip maker's market capitalization reached around $3.34 trillion at the end of trading on Tuesday, surpassing the value of Microsoft, which stood at $3.32 trillion, according to CNN, with Apple remaining in the third spot at $3.27 trillion.
The growth of Nvidia has seen the firm transform from one that is primarily recognized for manufacturing processors for video games into a worldwide dominator in the expanding industry of Artificial Intelligence, with major tech corporations looking for Nvidia's chips to function as the bedrock of this technology, skyrocketing its revenue.
NVIDIA market value
1st of January, 2020: $144 billion
Now: $3.33 trillion pic.twitter.com/LZnOLpDFmM— The Spectator Index (@spectatorindex) June 18, 2024
Nvidia is among the most prominent of the Magnificent Seven firms, which are the technology behemoths that have propelled a significant portion of the stock market's profits since the artificial intelligence mania struck Wall Street last year, the stock of the company has increased by almost 174% for the year and was named the greatest performer in the S&P 500 index in 2023 due to its performance.
After reporting a year-over-year growth in revenue of 262% and a year-over-year gain in profits of 462% in its most recent quarter results a month ago, Nvidia has recently concluded a 10-for-1 ratio stock split on June 7.
Jensen Huang, CEO of Nvidia, spoke on the future of AI during the COMPUTEX conference earlier this month saying “we’re at the cusp of a major shift in computing.” Huang noted that “the next wave of AI is physical AI. AI that understands the laws of physics, AI that can work among us,” adding that “Robotics is here. Physical AI is here. This is not science fiction, and it’s being used all over Taiwan. It’s just really, really exciting.”
