According to CNBC, Nvidia has usurped the position of the most valuable company in the world from "giant" Microsoft.
On Tuesday, Nvidia surpassed Microsoft to become the world's most valuable public company with a market capitalization of $3.34 trillion. This important milestone comes after the company's stock price skyrocketed a significant 170% this year and increased more than nine times since the end of 2022 thanks to the boom in artificial intelligence - generative AI.
Nvidia holds 80% of the data center AI chip market while Microsoft, Apple, Alphabet and Amazon also produce the processors needed to power AI models.
Blockbuster revenue growing and investor interest in AI are fueling Nvidia's growth. Thanks to that, after just 96 days, Nvidia's market value increased from 2 trillion USD to 3 trillion USD.
According to Bespoke Investment Group, it took Microsoft 945 days to grow from $2 trillion to $3 trillion while Apple took 1,044 days.
According to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, previously, only 11 US companies since 1925 reached have the top position in market value.
Previously, Microsoft reached the No. 1 position in the late 1990s but then its stock price struggled in the 2000s.
Exxon Mobil became the world's most valuable company in the 2000s, but its shares fell after oil prices crashed.
Bespoke analysis contrasts the trajectories of Nvidia and Cisco, whose products are both considered essential in supporting Internet infrastructure.
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“NVDA has performed incredibly but will need to continue to grow, fending off competition to continue delivering excellent returns,” Bespoke said.
While Nvidia is a standout performer, it's not the only stock benefiting from AI. Share prices of other technology companies, including Super Micro Computer and Arm Holdings, have also risen sharply this year.
