Nvidia Is Now the World's Most Valuable Company, Surpassing Microsoft and Apple Nvidia shares rose 3.5 per cent to $135.58, lifting its market capitalization by over $110 billion to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.

Nvidia shares rose 3.5 per cent to $135.58, lifting its market capitalization by over $110 billion to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company. Nvidia share price has nearly tripled to 173 per cent so far this year, compared with a rise of about 19 per cent in Microsoft shares. Last week, Nvidia split its stock 10-for-one, increasing the appeal for its highly valued stock among individual investors. The rally in Nvidia shares and a stunning surge in its market value over the past year has been driven by optimism about emerging artificial intelligence (AI) technology.

The company's market value jumped from $1 trillion to $2 trillion in just nine months in February, however, it took just a span of little over three months to hit the $3 trillion in June. Nvidia stock price rally also lifted the S&P 500 and Nasdaq to record highs. Nvidia has also become by far the most traded company on Wall Street, with daily turnover recently averaging $50 billion, compared to around $10 billion each for Apple, Microsoft and Tesla, according to LSEG data quoted by Reuters.

Nvidia's AI processors, widely acclaimed for their unmatched performance, are in high demand. This insatiable appetite for Nvidia's cutting-edge technology has positioned the company as the top beneficiary of the AI boom, with many investors hailing it as the biggest winner in the rapidly advancing AI landscape.

Talking from the cautious perspective, Oliver Pursche, senior vice president at Wealthspire Advisors in New York told Reuters, "Nvidia has been getting a lot of positive attention and has been doing a lot of things very correctly, but a small misstep is likely to cause a major correction in the stock, and investors should be careful."

The sea-saw of tech giants

Earlier this month, Nvidia briefly surpassed Apple by reaching the $3 trillion mark, making it the second most valuable company in the world, just behind Microsoft. However, Apple's announcement of upcoming changes to its operating system sparked a significant rise in its market value.

In the wake of these announcements, Apple even surpassed Microsoft to become the world's most valuable company, albeit for a fleeting moment. By mid-morning on Wednesday, June 12, Apple's market capitalization had soared to $3.3 trillion, edging past Microsoft's $3.2 trillion. Despite some fluctuations during the trading session, Microsoft ultimately reclaimed its position by the day's end. Read More.