United States of America chipmaker, Nvidia has become the world’s most valuable company, dethroning tech heavyweight Microsoft and Apple, as it its high-end processors play a central role in a race to dominate a surge in artificial intelligence technology.
Shares of the chipmaker climbed 3.5 per cent to $135.60, lifting its market capitalisation to $3.336 trillion, just days after overtaking iPhone maker Apple, opening a new tab to become the second most valuable company.
Microsoft’s stock market value was $3.325 trillion as its shares dipped 0.2 per cent. Apple’s stock slipped 1.3 per cent, putting its value at $3.278 trillion.
Nvidia’s stock has surged about 173 per cent so far this year, compared with a rise of about 19 per cent in Microsoft shares, with demand for its top-of-the-line processors outpacing supply.
Tech giants Microsoft, Meta Platforms and Google-owner Alphabet are competing to build out their AI computing capabilities and dominate the emerging technology.
Yesterday’s gain lifted Nvidia’s stock to a record high and added over $103 billion to its market capitalisation.
Nvidia commands more than 80 per cent of the market share for AI chips, making it a major winner from surging AI development. Since its blowout forecast about a year ago, the company has consistently breezed past Wall Street’s lofty expectations for revenue and profit, with demand for its graphics processors far outstripping supply as companies rush to embed AI applications.
Nvidia executives said in May that demand for its Blackwell AI chips could exceed supply “well into next year.” Increasing the appeal for its highly valued stock among individual investors, Nvidia recently split its stock 10-for-one, effective June 7.
