NEW YORK, USA – Nvidia, the shining star of Wall Street’s artificial intelligence boom, has emerged as the most valuable company in the world, overtaking tech giant Microsoft.
Nvidia’s market capitalization closed at approximately $3.34 trillion on Tuesday, surpassing Microsoft’s $3.32 trillion valuation.
Apple follows closely as the third most valuable U.S. company with a market cap of $3.27 trillion.
Nvidia’s shares saw a 3.5% increase on Tuesday, while Microsoft shares dipped by 0.5% and Apple shares fell by 1.1%.
Earlier this month, Nvidia joined the elite group of U.S. companies to reach a $3 trillion market cap, alongside Microsoft and Apple.
The chipmaker’s stock has experienced a meteoric rise over the past year and a half, driven by its unmatched technology in producing processors that power artificial intelligence systems.
These systems include generative AI, the technology behind OpenAI’s ChatGPT, capable of creating text, images, and other media.
Nvidia leads the pack of the “Magnificent Seven” tech stocks that have fueled much of the stock market’s gains since the AI frenzy gripped Wall Street last year.
The company’s stock has surged roughly 174% this year, making it the best performer in the S&P 500 index for 2023.
Under the leadership of CEO Jensen Huang, Nvidia’s ascendancy dethroned Microsoft amid fierce competition among tech giants for the top spot.
Apple’s brief stint as the most valuable U.S. company on June 13, spurred by generative AI announcements at its Worldwide Developers Conference, was short-lived as its market cap fell below Microsoft’s the next day.
Nvidia’s remarkable growth was highlighted by a 10-for-1 stock split on June 7 and an impressive quarterly performance last month.
The company reported a staggering 262% increase in revenue and a 462% increase in profits year-over-year, solidifying its dominance in the tech industry.
As Nvidia continues to ride the wave of the AI revolution, its position as the world’s most valuable company underscores the transformative impact of artificial intelligence on the global economy and the stock market.
