Nvidia became the world’s most valuable company on Tuesday, dethroning tech heavyweight Microsoft, as its chips continue to play a central role in a race to dominate the market for artificial intelligence.
Shares of the chip maker climbed 3.2% to US$135.21, lifting its market capitalisation to $3.326-trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.
The stock has surged about 173% so far this year, compared with a rise of about 19% in Microsoft shares, with demand for its top-of-the-line processors outpacing supply. Tech giants Microsoft, Meta Platforms and Google owner Alphabet are racing to build out their AI computing capabilities and dominate the emerging technology.
The surge in shares pushed the stock to a record high, adding over $103-billion to Nvidia’s market capitalisation on Tuesday.
Increasing the appeal for its highly valued stock among individual investors, Nvidia recently split its stock 10-for-one, effective 7 June.
“A stock split can reduce the price per share, making it more affordable for individual investors to buy. With Nvidia doing a 10:1 stock split, retail investors are the real winners here,” said Sam North, market analyst at investment platform eToro.
The company’s market value expanded from $1-trillion to $2-trillion in just nine months in February, while taking just over three months to hit $3-trillion in June. — Shristi Achar, Medha Singh and Ankika Biswas, (c) 2024 Reuters
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