Nvidia overtakes Microsoft and Apple to become world's most valuable company


Nvidia Corp's surge continues, pushing the chipmaker to the top of the global tech market capitalisation leaderboard. The AI ​​chipmaker overtook technology giants Apple and Microsoft to become the world's most valuable company. The achievement underscores the dominance of artificial intelligence (AI) in investor attention.

Shares rose 3.4% on Tuesday (June 18), pushing Nvidia's market cap ahead of the current No. 1 and No. 2 companies, Microsoft and Apple. Top tech companies vied for the number one spot throughout June, with Nvidia ultimately outperforming its rivals. Nvidia's rise to the top has been record-breaking thanks to significant revenue growth driven by AI. The company's stock price has risen more than 160% so far in 2024, boosting its market cap to more than $2 trillion.

Apple vs. Microsoft vs. Nvidia: Battle of the market cap
Earlier this month, Nvidia overtook Apple in market value for the first time in two decades. Since then, the two companies have been competing for the top spot. Last week, Apple briefly overtook Microsoft.

What does it mean for Nvidia to become the world's most valuable company?
According to Bloomberg, “This ranking is another reminder that AI is a top focus of many investors. Nvidia is considered one of the biggest and earliest beneficiary of this technology as it dominates the market with its highly sought-after chips that help power data centers running the complex computing tasks required by AI applications. Demand for its H100 accelerator is soaring and the chip maker's sales grew more than 125% last year.”

This change in the ranking reflects the growing importance of AI to investors. Nvidia is widely considered to be a pioneer and the biggest beneficiary of AI technology coming into the mainstream. The company holds a dominant position in the market with its popular chips.

While Microsoft is also considered a leader in the AI ​​space due to its investment in and partnership with OpenAI, the maker of ChatGPT, Apple recently unveiled its AI plans, which led to a recent surge in its stock, which made investors happy.

Analysts expect there will be fierce competition among Nvidia, Apple and Microsoft to become the first in the tech sector to break $4 trillion in market capitalization, according to a note from Wedbush Securities analyst Daniel Ives.

Investors and Nvidia CEO Jensen Huang believe the company is far beyond the label of a simple chip maker.

“They're not just selling chips, they're selling systems,” Michael Lippert, vice president and portfolio manager at Baron Capital Inc., told Bloomberg. He highlighted Nvidia's proprietary software and development ecosystem as a key differentiator.

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