Javascript is disabled in your web browser.
Please, to view this site correctly,
enable javascript.
For instructions to enable javascript
In your browser, click here.
Nvidia’s relentless rally has fueled the market capitalization of the semiconductor giant above its mega-cap tech peers, helping it take the title of the most valuable company in the world as the rise of Artificial Intelligence (AI) continues.
This Tuesday, Its shares rose up to 3.4%, placing its value around US$ 3.3 trillion (millions of millions)., which catapulted it above Microsoft and Apple. The main stocks have competed for first position throughout the month, with Nvidia surpassing its Big Tech counterparts.
Earlier this month, Nvidia surpassed Apple in market value for the first time since 2002. Last week, Apple also surpassed Microsoft and briefly held the top spot.
The classification is another reminder that AI is the main objective of many investors. Nvidia is seen as the biggest beneficiary of the technology, as it dominates the market with its coveted chips that help power the data centers that execute the complex computing tasks required by AI applications. Demand for its H100 accelerators is skyrocketing and contributed to increase sales of the manufacturer chips by more than 125% last year.
Microsoft, for its part, is also considered one of the first winners in AI thanks to its investment and partnership with OpenAI, creator of ChatGPT. And this week, Apple shares rose after the iPhone maker unveiled its plan to use the technology, finally appeasing investors.
Next level: US$4 trillion
“We believe that over the next year the race towards US$ 4 trillion market capitalization in technology will be headed by Nvidia, Apple and Microsoft”Daniel Ives, an analyst at Wedbush Securities, wrote in a note.
Investors and Nvidia CEO Jensen Huang maintain that Nvidia is more than a chipmaker.
“They are not limited to selling chipsbut systems,” said Michael Lippert, vice president and portfolio manager at Baron Capital, in an interview, alluding to the development and software company owner.
Nvidia’s rapid rise to the top has been record-breaking, as the company is one of the few to demonstrate significant revenue growth thanks to AI. As of last close, shares are up more than 160% in 2024adding more than US$2 trillion to its market capitalization.
“The chips “Nvidia GPUs are, in essence, the new gold or oil of the technology sector, as more companies and consumers quickly embark on this path with the Fourth Industrial Revolution well underway,” says Ives.
