Nvidia surpasses Microsoft as world's most valuable company

Nvidia surpasses Microsoft and Apple in historic market cap milestone

by Faruk Imamovic
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Nvidia surpasses Microsoft as world's most valuable company
© Getty Images/Justin Sullivan

Nvidia has surpassed Microsoft to become the most valuable company in the world. Nvidia's market capitalization soared to approximately $3.34 trillion on Tuesday, edging out Microsoft's $3.32 trillion valuation. Apple, another tech giant, holds the third spot with a market cap of $3.27 trillion.

A surge in stock performance

On Tuesday, Nvidia's shares saw a notable 3.5% increase, while Microsoft shares dipped by 0.5% and Apple shares fell by 1.1%. Earlier this month, Nvidia joined the ranks of tech titans by crossing the $3 trillion market cap threshold, a feat previously achieved only by a select few US companies.

Nvidia's rise to the top has been driven by its unparalleled advancements in chip technology, particularly in the realm of artificial intelligence (AI). The company's processors are integral to powering generative AI systems, including OpenAI's ChatGPT, which can create text, images, and other media.

This technological prowess has positioned Nvidia as a leader in the tech industry and a critical player in the ongoing AI revolution.

The magnificent seven and market dominance

Nvidia is a key member of the "Magnificent Seven," a group of tech stocks that have significantly influenced the stock market's returns since the AI frenzy took Wall Street by storm last year.

The company’s stock has skyrocketed by approximately 174% this year, making it the top performer in the S&P 500 index for 2023. The ascent of Nvidia, led by CEO Jensen Huang, underscores the fierce competition among tech giants for market supremacy.

Just last month, Apple briefly reclaimed its position as the most valuable US company after unveiling new generative AI features for the iPhone at its annual Worldwide Developers Conference. However, Apple's stock quickly dipped, placing it back behind Microsoft.

Nvidia’s financial success is further highlighted by its recent 10-for-1 stock split on June 7. Additionally, the company reported a blockbuster quarter with a staggering 262% increase in revenue and a 462% surge in profits year-over-year, solidifying its dominance in the tech sector.

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