Nvidia’s stock climbed 3.5% to $135.58, boosting its market capitalization by more than $110 billion to reach $3.335 trillion.
On Tuesday, Nvidia’s share price surged over 3%, solidifying its position as the world’s most valuable company, surpassing tech giant Microsoft.
Nvidia’s stock climbed 3.5% to $135.58, boosting its market capitalization by more than $110 billion to reach $3.335 trillion. This rise comes shortly after it overtook Apple, becoming the second most valuable company, according to Reuters.
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In a remarkable growth trajectory, Nvidia’s market value expanded from $1 trillion to $2 trillion in nine months by February, and soared to $3 trillion within a little over three months by June.
Meanwhile, Microsoft’s shares fell by 0.45%, bringing its market capitalization to $3.317 trillion. Apple’s shares also dipped over 1%, leaving its market value at $3.286 trillion.
Nvidia’s share price has nearly tripled this year, while Microsoft’s shares have risen by approximately 19%.
Recently, Nvidia executed a 10-for-1 stock split, enhancing the stock’s appeal among individual investors.
Nvidia’s impressive share price rally and significant market value increase over the past year have been fueled by enthusiasm around emerging Artificial Intelligence (AI) technology.
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This surge has also lifted the S&P 500 and Nasdaq to new highs. Nvidia has become the most heavily traded company on Wall Street, with daily trading volumes averaging $50 billion, compared to around $10 billion for Apple, Microsoft, and Tesla, as per LSEG data. Nvidia now represents about 16% of all trading activity in S&P 500 companies.
A strong demand for Nvidia’s AI processors, deemed superior to competitors’ products, has led to a tight supply. Many investors view Nvidia as the top beneficiary of the booming AI industry, according to Reuters.