Nvidia becomes world’s most valuable company, surpasses Apple, Microsoft

By Team Asianet Newsable | First Published Jun 19, 2024, 1:10 PM IST

Nvidia become the world's most valuable publicly traded company as the shares of the AI company jumped 3.4 percent, giving it a market capitalization of about $3.3 trillion. With this, the Jensen Huang- led company is now ahead of Microsoft and Apple.

Nvidia has surpassed tech giants Apple and Microsoft to become the world’s most valuable company, a milestone driven by an unprecedented surge in its shares. Tuesday saw a 3.5% increase in Nvidia's shares, bringing its market valuation to over $3.34 trillion. With this move, Nvidia has overtaken Apple and Microsoft, who have been fighting for the top spot lately.

The surge in demand for Nvidia's AI-optimized processors is the main driver of the company's extraordinary market value increase. Since its October 2022 low, the company's shares have increased by about 1,100%, or more than 170%, only this year.

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The firm has seen rapid growth thanks to exceptional profitability and increased investor excitement for AI. In just 96 days, Nvidia's market worth increased from $2 trillion to $3 trillion. According to Bespoke Investment Group, it took Apple 1,044 days and Microsoft 945 days to achieve the same breakthrough.

According to S&P Dow Jones Indices senior index analyst Howard Silverblatt, just 11 US corporations have ever finished first in market value on a closing basis since 1925, as reported by news agency Reuters.

The fortunes of these companies have varied widely. Microsoft, for example, hit the number one spot in the late 1990s but struggled post-dotcom bubble before rebounding strongly in the past decade.

Conversely, declining oil prices caused Exxon Mobil, formerly the most valuable firm in the world, to see a reduction in its shares. Another past leader worth considering is Cisco, whose shares fell sharply after reaching their peak during the dotcom boom. Recent quarterly numbers from Nvidia, whose revenue more than tripled to $26 billion and net income increased seven-fold to $14.9 billion, demonstrate the company's extraordinary growth.

While Nvidia stands out, other technology companies like Super Micro Computer and Arm Holdings have also seen significant gains, driven by the burgeoning AI market.

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