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- Feb 13, 2012
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The continued rise in NVIDIA's shares has pushed the semiconductor giant's market value to higher levels than its technology giant counterparts, helping it grab the title of the most valuable company in the world, as the wave of mania for artificial intelligence continues.
Shares rose as much as 4% to about $3.3 trillion on Tuesday, outperforming Apple and Microsoft. Shares of major companies competed throughout the month for first place, with NVIDIA finally outperforming its technology counterparts.
Earlier this month, Nvidia surpassed Apple in market cap for the first time since 2002, and both companies have moved up and down the rankings in recent days. Last week, Apple overtook Microsoft to briefly hold the top spot.
Focus on artificial intelligence
This rating is another reminder that artificial intelligence is a key focus for many investors.
NVIDIA is seen as the biggest and earliest beneficiary of this technology, because it dominates the market with its highly sought-after chips, which help data centers run the complex computing tasks required by AI applications.
Demand is growing for its H100 accelerators, which helped boost the chipmaker's sales by more than 125% last year.
Microsoft is also seen as an early winner of the AI craze, given its investments and partnership with OpenAI, which created ChatGPT.
This week, Apple shares rose after the iPhone maker finally revealed its plan to use artificial intelligence, appeasing investors after a long wait.
The race towards $4 trillion
“We believe the race to reach the $4 trillion market cap in technology over the next year will be the focus among the three companies,” Daniel Ives, an analyst at Wedbush Securities, wrote in a note.
Nvidia's rising stock price has made co-founder and CEO Jensen Huang one of the richest people in the world. His net worth has increased by more than $70 billion since the beginning of the year, reaching $115 billion, which places him in twelfth place on the Bloomberg Billionaires Index. This is the largest gain among his billionaire peers.
More than a chip company
Investors alongside Huang see Nvidia as more than just a chip maker.
“They're not just selling chips, they're selling systems,” Michael Lippert, vice president and portfolio manager at Baron Capital, said in an interview, referring to the company's proprietary software and development ecosystem.
NVIDIA's rapid rise to the top has been record-breaking, as the company is one of the few companies to show significant revenue growth from artificial intelligence. As of the recent close, shares had risen more than 160% in 2024, adding more than $2 trillion to its market value.
"The company's GPU chips are the new gold or oil in the technology sector, as more businesses and consumers are quickly heading down this path with the Fourth Industrial Revolution well underway," Ives said.
https://www.bobsguide.com/how-nvidi...apple-to-become-worlds-most-valuable-company/