Nvidia overtakes Microsoft to become world’s most valuable company
The computer chip maker also overtook Apple in valuation earlier this month.
US computer chip maker Nvidia has become the world’s most valuable company after it reached an all-time high valuation of 3.34 trillion dollars (£2.63 trillion) on Tuesday.
The firm’s stock price rose more than 3% during the trading day to end at nearly 136 dollars (£107), making it more valuable than tech giant Microsoft, which had held the most valuable title.
The company had already overtaken Apple in valuation earlier this month.
As a result, demand for Nvidia products has soared, boosting the company’s sales and profits as tech giants including Microsoft, Google, Meta, Amazon and Apple battle to create new AI-powered products.
The increasing focus on AI products from the biggest tech companies has seen some investors suggest that Nvidia’s earnings could continue to grow, which has pushed up the company’s share price further.
The rise on Tuesday saw the company’s valuation reach 3.34 trillion dollars (£2.63 trillion), a valuation which is now more than 180% higher than it was at the start of the year.
Eight years ago, the company’s stock was worth less than 1% of its current price.
The rise of the tech company has also seen its chief executive, Jensen Huang, become a more prominent figure.
He has attained such a celebrity status that Meta boss Mark Zuckerberg even recently said Mr Huang, who is known for his signature leather jacket, is “like Taylor Swift, but for tech”.
“Nvidia’s relentless rise to the top of the leader board illustrates a crucial point: powerful hardware is the foundation upon which the AI revolution is built,” he said.
“As enterprise and start-ups alike bet big on AI, more players are entering this arena and catching up quickly. In this battleground for AI spend, constant innovation is king.
“But, while powerful chips are a key ingredient, the AI ecosystem is more than just hardware. We need a diverse offering at the chip, hardware, and software level to support a thriving, sustainable AI landscape.
“As AI continues to develop, collaboration and diverse innovation in every element of the infrastructure will be crucial to unlocking its full potential.”
