Nvidia surges to top position in the stock market
Tech titan Nvidia, now worth around $3.33 trillion at the stock market, takes the crown as the most valuable company, dethroning software behemoth Microsoft.
Nvidia's dominance in the AI market led to its new status as the most valuable company on the stock market. In late US trading, Nvidia hit a market value of approximately $3.33 trillion dollars and outpaced Microsoft. The key factor was a 3.5% price hike for Nvidia, while Microsoft's stock slightly dipped.
Nvidia's chips are crucial for AI applications. Their systems are used in data centers to train AI software, and they're becoming increasingly common in operations. Competitors like Intel and AMD haven't made significant inroads in this market so far.
Nvidia controls about 80% of the global market for high-performance AI chips, which can cost tens of thousands of dollars each. Companies are snatching these chips from Nvidia's hands as they upgrade their servers for AI tasks. Furthermore, Nvidia's recent 10-for-1 stock split has made its shares more appealing to individual investors, according to analyst Sam North from the online broker eToro.
Brands like Apple, Microsoft, and Nvidia lead the pack in terms of market value. Last week, Apple saw a price increase following the announcement of new AI functions for the iPhone. Microsoft, however, is integrating AI technology, valued over a billion dollars, into its products through a partnership with OpenAI, the creators of ChatGPT.
Nvidia profits from this surge and sells thousands of high-priced chip systems to tech giants such as Microsoft, Google, and Meta (Facebook). The recent announcement of a collaboration with the computer company Hewlett Packard Enterprise for AI business technology preceded the current price jump. By the end of late trading, Microsoft was valued at $3.327 trillion dollars, while Apple was at $3.277 trillion dollars.
