Nvidia’s share price surged over 3% on Tuesday, propelling the chip maker to the top spot as the most valuable company globally, surpassing tech giant Microsoft.
Impressive Stock Performance
- Nvidia shares jumped by 3.5% to $135.58, driving its market capitalization up by over $110 billion to $3.335 trillion. This achievement comes shortly after surpassing Apple to claim the second spot in market value growth.
- The company’s market value soared from $1 trillion to $2 trillion in just nine months by February, and in a little over three months, it skyrocketed to $3 trillion in June.
Market Comparison
- Microsoft’s share price dipped by 0.45%, reducing its market value to $3.317 trillion. Apple also experienced a decline of over 1%, leaving its value at $3.286 trillion.
- Nvidia’s share price has nearly tripled this year, a stark contrast to Microsoft’s modest 19% increase in shares.
Strategic Move
- Last week, Nvidia split its stock 10-for-one, making its highly valued stock more accessible to individual investors.
Driving Force: AI Technology
The surge in Nvidia shares and market value is fueled by optimism surrounding emerging Artificial Intelligence (AI) technology.
Wall Street Dominance
- Nvidia’s stock price surge has propelled the S&P 500 and Nasdaq to record highs.
- The chipmaker has become the most traded company on Wall Street, with daily turnover averaging $50 billion, far surpassing Apple, Microsoft, and Tesla.
- Nvidia now represents about 16% of all trading in S&P 500 companies.
Superior AI Processors
A high demand for Nvidia’s AI processors, known for their superiority over competitors’ offerings, has resulted in tight supply. Many investors see Nvidia as the prime beneficiary of the rapid advancement in AI technology.