Nvidia is now the most valuable listed company – thanks to the AI boom
Nvidia is now the most valuable company in the world, surpassing Microsoft. Its stock market value rose to 3.33 trillion dollars thanks to AI chips.
(Image: Michael Vi/Shutterstock.com)
Nvidia has overtaken Microsoft as the world's most valuable listed company. On Tuesday, the chip company reached a market capitalization of over 3.33 trillion US dollars, surpassing software giant Microsoft, which came in at 3.327 trillion dollars. Apple was in third place with 3.277 trillion dollars.
Nvidia benefits from key role in the AI sector
Nvidia is one of the biggest beneficiaries of the AI boom. The company's chips play a crucial role in the training and operation of AI software. Large tech companies such as Microsoft, Google and Meta rely on thousands of expensive Nvidia chip systems for their AI applications. Competitors such as Intel and AMD have not yet been able to provide Nvidia with any significant competition in this market.
The share price jump on Tuesday followed the announcement of a cooperation with Hewlett Packard Enterprise for AI technology in companies. Since the beginning of the year, Nvidia's share price has already increased by around two and a half times. In the past quarter, the Group increased its turnover by 262 percent year-on-year from 7.2 billion dollars to 26 billion dollars.
Apple and Microsoft are also focusing on AI
Microsoft is working on integrating AI into its products through a multi-billion dollar pact with the ChatGPT developer OpenAI. The iPhone manufacturer Apple also announced new AI functions last week, which gave its shares a boost. However, Apple was still lagging Microsoft and Nvidia on Tuesday.
It was only at the beginning of June that Nvidia briefly overtook Apple as the second most valuable company. Thanks to the announcement of its AI strategy, however, Apple was able to push past Nvidia into second place again. Investors particularly rewarded the company's plan to integrate AI into its own platforms while protecting privacy and its cooperation with AI companies such as OpenAI for its own language models.
However, Apple's "Apple Intelligence" will not be available until the fall, initially only in English. Full AI support will also be limited to newer devices such as the iPhone 15 Pro. Wall Street is hoping that this will lead to a "super cycle" in which many users will replace their smartphone with a new, AI-enabled iPhone 16.
The big tech companies see AI as the key technology of the future. Nvidia's leap to the top of the world's stock markets shows just how great the expectations for the potential of artificial intelligence now are.
(vza)
