Nvidia has surpassed Microsoft as the world’s most valuable public company during trading on Tuesday. This was due to a more than 3% increase in Nvidia’s shares, which propelled it to the number one spot. With a market value of $3.326 trillion, Nvidia’s stock value has risen dramatically this year due to its leading position in the artificial intelligence race.
In contrast, Microsoft’s shares have only increased by 19% this year. While this surge would typically be considered successful, it pales in comparison to Nvidia’s impressive performance. Market analysts attribute the demand for Nvidia’s shares to a recent stock split, which made them more appealing to individual investors.
Apple had previously been the top company, but Microsoft briefly took the lead earlier this year. However, Apple’s growth in share price has not kept pace with companies on the cutting edge of AI technology. Microsoft’s investment in OpenAI, the maker of ChatGPT, has been seen as a beneficial move that helped boost the company’s shares.
Nvidia’s stock split on June 7th created more affordable shares for retail investors, which contributed to the recent surge in share price. The company’s processors are in high demand, surpassing supply as competitors like Microsoft, Meta Platforms, and Google’s owner race to develop AI computing capabilities. The $100 billion increase in Nvidia’s market value on Tuesday alone demonstrates the company’s dominance in the market. Retail investors are seen as the real winners of Nvidia’s stock split.
