NVIDIA has surpassed Microsoft as the world's most valuable company thanks to its dominance in the AI boom.
Less than two weeks after displacing Apple for second place in the business world's answer to sports MVP, the GPU and semiconductor company NVIDIA has now taken the top spot in its overall valuation thanks to its powerhouse position as an AI chip producer, reportedly representing 80 percent of the processor market.
At the close of trading on Tuesday, NVIDIA's closing share price was $135.58, marking a $4.60 increase from the previous day. Its market value has soared to $3.335 trillion, which means it's now worth more than the most prominent tech colossi like Microsoft, Apple, and Google.
Analysts have said that a stock split created more shares and made NVIDIA more attractive to individual investors and that the growth in Nvidia's stock on Tuesday added more than $100 billion to its market value.
Since the start of the year, the value of the company's shares has shot up by an impressive 160 percent. It had only reached a value of $2 trillion for the first time in February.
NVIDIA reported over $26 billion in revenue in its most recent earnings call ahead of the arrival of its highly anticipated Blackwell GPU architecture, which the company has hyped up as "the world's most powerful chip".
In a recent update, NVIDIA CEO Jensen Huang announced that the upcoming Blackwell units will be priced between $30,000 and $40,000. Additionally, the company is committed to innovation, with plans to unveil new AI chips annually, keeping the technology fresh and up-to-date.
The demand for the company's processors is currently outstripping the available supply. Major tech players like Microsoft, Meta Platforms, and Alphabet (Google's parent company) are heavily investing in the development of AI computing capabilities, fueling an industry-wide race for technological advancement.
Microsoft's time at the top has proven short-lived. It had only taken the crown of the most valued company off Apple earlier this year as excitement over its AI investments, including in OpenAI, counter-balanced market concerns over demand for Apple iPhones.
Microsoft And NVIDIA In The AI Race
The common logic is that there's a thin line between competitors and collaborators in the tech world, and that couldn't be a more apt description of Microsoft and NVIDIA's dynamic.
