Nvidia’s Market Cap Soars to $3.335 Trillion, Overtaking Microsoft

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Nvidia's Market Cap Soars to $3.335 Trillion, Overtaking Microsoft

Nvidia gained Top Position as world’s most valuable company

Nvidia attained the position of the world’s most valuable company after dethroning Microsoft on Tuesday, 18 June 2024. This position eventually raised the share of the company which brought a sensation in the stock market and the effects are visible in today’s market as well. As per the reports, the market capitalisation of Nvidia on Tuesday stood at $3.335 trillion and the credit goes to the rising price of shares which helped the company to increase its market capitalisation and knock off Microsoft from the top position.

On Tuesday, the shares of Nvidia rose by 3.5 per cent to $135.58. Meanwhile, the market capitalisation of Microsoft stood at $3.32 trillion on Wednesday, 19 June and fell by 2.3 per cent. Before defeating Microsoft, Nvidia surpassed the position of Apple and became the world’s second most valuable company. Over the past few days, the Santa Clara California-based company has eclipsed two top companies in the world. The success of Nvidia is creating a new history and roaring as the world’s most valuable company. 

After Nividia, Microsoft is in second position and Apple is in third. Shares of both companies dropped by 0.45 per cent and 1.1 per cent respectively which affected the market capitalisation of both companies. The stock market value of Microsoft was $3.317 trillion on Tuesday and Apple’s stock value was at $3.286 trillion. Over the past year, the stunning surge in the market value of Nvidia has become emblematic of a Wall Street frenzy driven by optimism about emerging Artificial Intelligence technology. 

The S&P 500 and Nasdaq indexes have reached all-time highs thanks to Nvidia’s climb, which has extended the company’s winning run for speculators. GPUs are essential to the advancement of artificial intelligence. Investors in Asia reviewed the trade data of Japan for May, noting that exports exceeded expectations. Encouraged by IT giants like Microsoft, Meta, and Google’s insatiable want for its chips, the company’s stock price has increased by more than 182 per cent this year alone, following a more than threefold increase in 2023.

Steve Sosnick, chief market strategist at Interactive Brokers said, “It’s Nvidia’s market; we’re all just trading in it.” 

Nvidia controls about 80% of the market for AI chips used in data centres required to run AI models such as OpenAI’s ChatGPT. 

As per LSEG data, Nvidia has also attained the position as the most traded company on Wall Street, with daily turnover recently averaging $50 billion, compared to around $10 billion each for Apple, Tesla, and Microsoft. The company established its foundation in 1993 and entered the stock market in 1999, since then the share price of Nividia has skyrocketed 591,078 per cent. For example, if an investor put $10,000 into the company in 1999 its shares would hold $59,107,800 worth of stock today.  For this year particularly, the stock of Nvidia has nearly tripled with a rise of nearly 19% in Microsoft shares. 

For the first couple decades of its existence, Nvidia’s primary engagement was in creating chips for computer games. Later on, chief executive Jensen Huang shifted the attention of the company to focus on developing GPUs for use in applications besides gaming in 2000 which appeared as a game changer in the technology world and set the company up to capitalize on the emergence of AI. The tremendous rise of the company in the market helped the chief executive to become one of the world’s richest men whose estimated net worth stood at $117bn.

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