• With NVIDIA’s stock surpassing $3.3 trillion, the company has become the most valuable company in the world.
• The hardware manufacturer’s stock value has jumped around three times its previous value in 2024 alone.

NVIDIA has surpassed Microsoft to become the world’s most valuable company after crossing a value of $3.3 trillion. The company’s meteoric rise has been primarily attributed to its high-end processors, which have become increasingly critical to companies working on artificial intelligence technology.

NVIDIA’s share values rose by more than 3% to $135.58, reaching a market value of $3.335 trillion. The jump came mere weeks after the chip manufacturer surpassed Apple, becoming the second most valuable company worldwide. On the other hand, Microsoft’s value slid by 0.45% to $3.317 trillion, While Apple’s value also fell by 1% hitting $3.2 trillion.

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NVIDIA’s surge has been primarily driven by Wall Street trends that are incredibly optimistic about AI technology following the debut of ChatGPT in 2022. The chip manufacturer has also become the most traded company, with a $50 billion daily turnover, which is nearly five times that of other leading companies. NVIDIA’s shares have risen more than 200% over the past year and more than 3400% in the past five years. In 2024 alone, the company has risen by around 175%.

The company has been touting its chips, the CUDA software platform, and modified graphics cards over competitors like Intel and AMD. Leaders in the AI sector, including Amazon, Meta, Google, Tesla, and Microsoft, have been using NVIDIA products on a large scale. While the growth of investments in the AI sector is expected to continue in the near future, there are also concerns about over-optimism in case companies reduce their expenditures.

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