Nvidia has recently become the world’s most valuable company by market capitalization, surpassing Microsoft on Tuesday. The chipmaker’s shares rose by 3.5% to $135.58 during the day’s trading, bringing its total perceived value to $3.335 trillion. This increase in market capitalization can be attributed to the growing demand for AI and machine-learning technologies, in which Nvidia plays a crucial role by producing essential processors for these products.
Just two years ago, in July 2019, a single Nvidia share was valued at less than $4. The stock price has since increased by more than 30 times, making Nvidia shares highly sought after. In fact, Nvidia shares make up about 16% of all trading in the 500 largest companies listed in the US, making them the most commonly bought and sold shares on the market.
Tech giants like Nvidia, Microsoft, Apple, and Google have long dominated the rankings of the most valuable companies in the world. These companies continue to hold a strong presence at the top of these rankings with Apple currently ranked third and Saudi Aramco and Alphabet (Google) following closely behind. Tesla also makes it into this elite group due to its continued innovation in various industries.
