Nvidia's market capitalization soared to an astonishing $3.335 trillion, surpassing tech giants Apple and Microsoft. This surge signifies Wall Street's enthusiasm for artificial intelligence (AI), although some experts express concerns about potential slowdowns in AI spending. On Tuesday, Nvidia's stock climbed 3.6%, pushing its market value to $3.34 trillion. In contrast, Microsoft and Apple experienced declines, leaving Nvidia at the forefront.
Nvidia Surpasses Microsoft to Become World's Most Valuable Company
Tech • 20 Jun, 2024 • 1,55,683 Views • ⭐ 1.0
Written by Shivani Chourasia
Nvidia's Rise to the Top of the Tech World
On Tuesday, Nvidia ascended to the pinnacle of global market value, unseating Microsoft as its high-end processors became pivotal in the AI technology race. Nvidia's shares increased by 3.5% to reach $135.58, elevating its market cap to $3.335 trillion. This achievement came shortly after Nvidia overtook Apple to become the second most valuable company. At the close of trading, Microsoft's market value was $3.317 trillion, following a 0.45% dip in its shares. Meanwhile, Apple's stock slipped by over 1%, leaving its market value at $3.286 trillion.
forefront.
The AI-Driven Market Frenzy
Nvidia's remarkable market value surge over the past year epitomizes the current Wall Street enthusiasm driven by advancements in AI technology. The company's rally has propelled the S&P 500 and Nasdaq to record highs. However, there are concerns that the unrestrained optimism about AI might wane if spending on the technology slows down.
“It’s Nvidia’s market; we’re all just trading in it,” stated Steve Sosnick, Chief Market Strategist at Interactive Brokers. This statement reflects the dominance Nvidia has achieved in the stock market, significantly influencing trading patterns and investor behaviour.
forefront.
Dominating Wall Street Trading
Nvidia has become the most traded company on Wall Street, with an average daily turnover recently reaching $50 billion. This figure dwarfs the $10 billion average for other tech giants like Apple, Microsoft, and Tesla, according to data from LSEG. Nvidia now represents about 16% of all trading in S&P 500 companies, highlighting its massive influence on the market.
Nvidia's stock has nearly tripled this year, compared to a 19% rise in Microsoft shares, driven by the insatiable demand for its top-tier processors. Tech behemoths like Microsoft, Meta Platforms, and Alphabet (Google's parent company) are fiercely competing to enhance their AI capabilities and integrate the technology into their offerings.
forefront.