Nvidia has surpassed Microsoft to become the world’s most valuable company due to its growing dominance of its high-end processors in artificial intelligence (AI) technology, Reuters reports.
Nvidia’s market capitalization reached $3.341 trillion after its shares rose 3.7% to $135.87, ahead of Microsoft’s $3.314 trillion and Apple’s $3.280 trillion. This surge follows Nvidia overtaking Apple just days earlier to claim the second spot. Nvidia’s stock has increased nearly threefold this year, driven by high demand for its superior AI processors, which are in short supply.
The company’s dramatic rise reflects Wall Street’s enthusiasm for AI, although concerns persist about sustainability if AI spending slows. Nvidia’s recent 10-for-one stock split has further increased its appeal among investors. However, analysts caution that any missteps could lead to a substantial stock correction.
