Nvidia dethrones Microsoft to become the world's most valuable company

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Nvidia, the renowned graphics card manufacturer, has ascended to the pinnacle of the global corporate ladder. The tech titan has dethroned Microsoft, seizing the title of the world’s most valuable company.

 

The catalyst for this monumental shift was a strategic stock split, which propelled Nvidia’s value into the stratosphere. This move came merely 12 days after Nvidia had claimed the second spot from another tech giant, Apple. The stock split not only increased the number of shares but also made them more appealing to individual investors.

 

Nvidia’s shares soared to an all-time high, ending the trading day at nearly $136 (it rose further after hours). This surge in share price resulted in a market value of a staggering $3.34 trillion. 

 

 

The demand for Nvidia’s processors has been skyrocketing, given their crucial role in AI software. This has led to a significant boost in the company’s sales and profits over the last few years. The market’s faith in Nvidia’s potential for further growth has fueled the company’s share price.

 

However, Nvidia’s journey to the top hasn’t been without its challenges. The company faces fierce competition from other tech heavyweights, including Microsoft, Google’s parent company Alphabet, Meta, and Apple. Despite this, Nvidia dominates the majority of the AI chip market.

 

Will Nvidia be able to maintain its newfound position against the increasing number of rivals in the AI arena? We invite you to share your thoughts on this intriguing development.

 

 

 

Read more:

• https://www.theguardian.com/technology/article/2024/jun/18/nvidia-valuation-most-valuable
• https://www.washingtonpost.com/technology/2024/06/18/nvidia-most-valuable-company-microsoft-ai/
• https://www.bloomberg.com/news/articles/2024-06-18/nvidia-becomes-world-s-largest-firm-as-ai-rally-steams-ahead

 

Top image: Dragan Mihajlovic | Dreamstime.com