Nvidia has become the world’s most valuable company after its stock hit a record high on Tuesday. The share price rose to nearly $136, up 3.5%, surpassing Microsoft in value. Nvidia had already overtaken Apple earlier this month.
Nvidia’s computer chips are essential for AI software, and the increasing demand for AI has boosted the company’s sales and profits over the years. This demand has led to a surge in its share price, with investors optimistic about future growth.
The company is now valued at $3.34 trillion, nearly double its value since the start of this year. Eight years ago, the stock was worth less than 1% of its current price.
Nvidia benefits from intense competition among AI developers like Microsoft, Google-owner Alphabet, Meta, and Apple.
As the dominant player in the AI chip market, Nvidia’s sales and profit figures have consistently exceeded analysts’ expectations.
In May, technology analyst Ben Barringer praised Nvidia for meeting high performance standards, noting that demand remains strong.
However, some analysts are cautious. In February, Barclays credit analyst Sandeep Gupta questioned whether Nvidia could maintain its large market share amid growing competition and how its customers would profit from AI software.
This summary is based on a report from the BBC.
https://www.bbc.com/news/articles/cyrr40x0z2mo