Nvidia share price rallied over 3% on Tuesday as the chip maker the world’s most valuable company, dethroning tech heavyweight Microsoft.
Nvidia shares rose 3.5% to $135.58, lifting its market capitalization by over $110 billion to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company, Reuters reported.
The company’s market value expanded from $1 trillion to $2 trillion in just nine months in February, while taking just over three months to hit $3 trillion in June.
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Microsoft share price dropped 0.45% and its stock market value was $3.317 trillion. Apple share price slipped over 1%, leaving its value at $3.286 trillion.
Nvidia share price has nearly tripled so far this year, compared with a rise of about 19% in Microsoft shares.
Last week, Nvidia split its stock 10-for-one, increasing the appeal for its highly valued stock among individual investors.
The rally in Nvidia shares and a stunning surge in its market value over the past year has been driven by optimism about emerging Artificial Intelligence (AI) technology.
Nvidia stock price rally also lifted the S&P 500 and Nasdaq to record highs. Nvidia has also become by far the most traded company on Wall Street, with daily turnover recently averaging $50 billion, compared to around $10 billion each for Apple, Microsoft and Tesla, according to LSEG data. The chipmaker now accounts for about 16% of all trading in S&P 500 companies.
An insatiable appetite for Nvidia’s AI processors, viewed as far superior to competitors’ offerings, has left them in tight supply, and many investors view Nvidia as the greatest winner to date from surging AI development, Reuters reported.
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(With inputs from Reuters)
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Published: 19 Jun 2024, 08:38 AM IST
