Chipmaker giant NVIDIA has dethroned Apple and Microsoft to claim the top spot as the world’s most valuable company. This is a clear example of how Artificial Intelligence (AI) can play a central role in making firms reach new heights.
NVIDIA’s stock price surged 3.5%, pushing its market capitalization to $3.335 trillion. This comes after their recent victory over Apple for the second-place position. But soon after WWDC happened, Apple took the first spot again by briefly dethroning Microsoft, thanks to the newly unveiled Apple Intelligence and partnership with OpenAI, to whom Apple is paying nothing.
While Microsoft’s market value sits at $3.317 trillion and Apple’s trails behind at $3.286 trillion, both companies had a slight dip in their stock prices.
However, experts warn that such optimism could be a double-edged sword. If signs of a slowdown in AI spending appear, the current high around NVIDIA might cool down dramatically.
NVIDIA’s daily turnover has exceeded $50 billion. It holds the record for the fastest growth from $1 trillion to $2 trillion in market value, surpassing Amazon and Google’s parent company Alphabet.
NVIDIA’s stock has nearly tripled this year, outpacing Microsoft’s 19% increase, which overtook Apple back in January. Its top-of-the-line processors are in such high demand that supply struggles to keep up.
Overall, while the future seems bright for NVIDIA, some experts advise caution. The stock’s current valuation might not fully reflect what the future might hold for them. But either way, hats off to NVIDIA!