The artificial intelligence (AI) boom continues to make waves through the stock markets, pushing AI chipmaker Nvidia’s market capitalisation over that of its tech peers.
Nvidia, whose graphics processing units (GPUs) are integral to the development of AI algorithms, achieved a market capitalisation of $3.335 trillion after the company’s shares jumped 3.5% to $135.58 on Tuesday.
As a result, Nvidia is now considered the world’s most valuable company, a spot previously held by Bill Gates’ Microsoft. The chipmaker’s rise was fast, as Nvidia had only risen to the second spot on the list a day prior, after overtaking Apple.
The shares of Microsoft and Apple fell by 0.45% and 1.1%, respectively, on Tuesday.
Nvidia controls about 80% of the market for AI chips used in data centres required to run AI models such as OpenAI’s ChatGPT. The company’s stock price has surged nearly 182% in 2024 alone, after more than tripling in 2023.
Earlier this month, the company published its Q1 financial results, reporting a revenue of $22.1 billion, up 22% from the previous quarter and 265% from a year ago. GAAP earnings per diluted share were $4.93, up 33% from the previous quarter and 765% from a year ago.
