:max_bytes(150000):strip_icc()/GettyImages-2155386328-16bc17e08c0749fa9871fa560fc4700f.jpg?w=1024&resize=1024,1024&ssl=1 "Nvidia Surpasses Microsoft to Become World’s Most Valuable Company")
Nvidia’s stock soared 3.5% on Tuesday, propelling the AI chip maker’s market value above that of Microsoft and Apple for the first time in history. The company’s market capitalization has skyrocketed tenfold since October 2022, driven by the launch of ChatGPT that triggered an AI frenzy in the markets for the past year and a half.
Nvidia has transitioned from a leading manufacturer of graphics processing units for gaming computers to the dominant player in the AI semiconductor market. Its market value now exceeds $3.335 billion, surpassing Microsoft’s market capitalization of $3.317 trillion.
The company’s meteoric rise was further fueled by the unveiling of its next-generation AI system, Rubin, which is set to launch in 2026. Investor optimism in AI has been bolstered by strong earnings reports from other AI infrastructure providers like Broadcom and Oracle, as well as Apple’s recent introduction of Apple Intelligence.
With this remarkable growth trajectory, Nvidia has become the seventh US company to exceed a market capitalization of $1 trillion in May and reached $2 trillion in February after solid fiscal fourth-quarter earnings. Just 96 days later, the company crossed the $3 trillion mark earlier this month.
Nvidia’s recent success underscores the increasing importance of AI in the tech industry and the demand for AI chips to power various applications. As the AI industry continues to expand, Nvidia is well-positioned to capitalize on this trend and maintain its position as a market leader.
In conclusion, Nvidia’s rise to the top of the market value charts highlights the company’s success in the AI semiconductor market and the investor confidence in its future prospects. The unveiling of Rubin and positive earnings reports from other AI infrastructure providers have further reinforced the company’s position as a key player in the AI industry.
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https://www.investopedia.com/nvidia-overtakes-microsoft-worlds-most-valuable-company-8665528