Nvidia 'dethrones' Microsoft, becomes the world's most valuable company

Nvidia gains value as demand for processors soars in AI race

The New York Times reported on June 19 that Nvidia has just become the world's most valuable company, "dethroning" Microsoft in the context of high-end processors playing a central role in the artificial intelligence (AI) race.

Shares of Nvidia, a multinational corporation headquartered in California (USA), rose 3.5% to $135.58, raising its market capitalization to $3,335 billion, just days after surpassing iPhone maker Apple to become the world's second most valuable company.

Nvidia surpasses Microsoft to become the world's most valuable company

Microsoft's stock market value was $3.317 billion as its shares fell 0.45%. Apple's shares fell more than 1%, giving it a value of $3.286 billion.

Nvidia's stunning surge in market value over the past year has become emblematic of Wall Street's extraordinary volatility, fueled by optimism about emerging AI technology.

While Nvidia's rally has lifted the S&P 500 and Nasdaq to record highs, some investors worry that excessive optimism about AI could dissipate if there are signs of a slowdown in spending on the technology.

Nvidia has also become the most traded company on Wall Street, with recent daily turnover averaging $50 billion, compared with about $10 billion for Apple, Microsoft and Tesla. The chipmaker now accounts for about 16% of total S&P 500 trading.

Nvidia shares have nearly tripled this year, compared with a gain of about 19% for Microsoft, with demand for its flagship processors outstripping supply.

Tech giants like Microsoft, Meta Platforms and Google owner Alphabet are competing to build AI computing capabilities and add the technology to their products and services.

Huge demand for Nvidia's AI processors, which are seen as far superior to those of competitors, has led to tight supply, and many investors see Nvidia as the biggest winner so far from AI developments.

Source: https://thanhnien.vn/nvidia-soan-ngoi-microsoft-tro-thanh-cong-ty-co-gia-tri-lon-nhat-the-gioi-185240619063000255.htm