Nvidia sign

Nvidia smashes Apple, Microsoft stock market dominance thanks to AI

Chip maker sees 160% increase in value so far this year
Image: Nvidia

19 June 2024

Nvidia has passed Microsoft and Apple as the world’s most valuable company.

On Tuesday night, Nvidia reached a value of some $3.3 trillion an increase of more than 160% in a year. Earlier this month, the company was also briefly worth more than Apple, but then Microsoft was still in first place.

The company’s market value grew from $1 trillion to $2 trillion in just nine months in February, while it took just over three months to reach $3 trillion in June.

Nvidia also became by far the most traded company on Wall Street, with daily sales averaging $50 billion, compared with about $10 billion each for Apple, Microsoft and Tesla. The chipmaker now accounts for about 16% of all trading in shares of S&P 500 companies.

The company’s success is being fuelled by demand for artificial intelligence (AI) applications requiring increased compute power supplied by Nvidia’s chips.

Executives warned back in May that demand for its so-called Blackwell AI chips could exceed supply well into next year.

Nvidia’s heritage is in developing graphics cards for the gaming sector. Whether it will maintain its leadership position is the question now that Intel, Qualcomm and AMD are also investing heavily in AI.

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