Microsoft has been dramatically ousted as the world’s most valuable public company.
Nvidia, which had only surpassed Litter for second place earlier this monthdethroned Microsoft during trading on Tuesday, with its shares rising more than 3%.
Shares have risen more than 170% this year due to the chipmaker’s leading position in the artificial intelligence (AI) race, with 80% of the processor market.
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The latest upward move has pushed its market value to $3.326 trillion.
It reached US$2 trillion in February.
The company’s meteoric rise marks another milestone in the technology sector, which Apple has dominated since the launch of the iPhone in 2007.
Apple only lost the crown to Microsoft earlier this year when concerns about iPhone demand weighed on the stock.
At the same time, Microsoft’s investment in OpenAI, maker of ChatGPT, was seen as beneficial to its shares as it took the lead in generative AI.
Analysts said demand for Nvidia shares was boosted earlier this month by a stock split that created more shares and made them more attractive to individual investors.
They cost more than $1,000 each before splitting on June 7.
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Microsoft shares are up just 19% year-to-date in comparison – a rise that would normally be seen as satisfactory were it not for Nvidia’s enviable performance.
Demand for the California-based company’s processors is exceeding supply as Microsoft, Meta Platforms and owner Google spend big in the race to develop AI computing capabilities.
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Market watchers said Tuesday’s surge in Nvidia shares alone added more than $100 billion to its market value.
Sam North, an analyst at investment platform eToro, credited the anticipation of the stock split – and the split itself – for the recent rise in share prices.
“The split can reduce the price per share, making purchase more accessible for individual investors,” he explained.
“With Nvidia doing a 10:1 stock split, retail investors are the real winners here”.
This story originally appeared on News.sky.com read the full story
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