Nvidia overtakes Microsoft to become world’s most valuable public company

by Mick the Ram

Nvidia has overtaken Microsoft to become the world’s most valuable company, just a month after leapfrogging Apple.

The company makes computer chips which are needed for artificial intelligence (AI) software, and demand for its products has been rapidly boosting its sales and profits over the last few years.

Even though some analysts have questioned Nvidia’s incredibly high valuation, there are many investors who believe that its earnings will continue to soar.

It’s market value at the end of June stood at $3.34tn (£2.63tn), with the price having astonishingly almost doubled since the start of this year.

It is hard to believe that just eight years ago, it’s stock was worth less than 1% of its current price.

Astonishing percentage rise in stock

There were raised eyebrows when Nvidia overtook Apple to claim the number two spot at the beginning of last month, but to then dethrone Microsoft just a matter of weeks later, really shook the industry.

In February of this year it was valued at $2trn, so their stock has risen more than 170% in less than five months, thanks to the chipmaker’s leading position in the AI race, with a controlling interest of 80% of the processor market.

Apple under pressure

The meteoric rise marks another milestone in the tech sector, which Apple had completely dominated since it launched the iPhone in 2007

Apple had actually only lost its own top crown to Microsoft at the start of the year, with blame attributed to growing worries over iPhone demand.

30 times quicker chip released

Competition among AI developers is fierce, with Microsoft, Google-owner Alphabet, Meta and Apple being just a few of the tech heavyweights battling to create a world-beating product.

However, the more competition definitely benefits Nvidia, who recently unveiled their latest intelligence chip which the US tech giant declared can do some tasks 30 times faster than its predecessor, as they seek to cement their dominance.

Competition also major customers

Chief Executive Jensen Huang also detailed a new set of software tools at its annual developer conference where he indicated that major customers such as Amazon, Google, and Microsoft itself, are expected to use the firm’s new flagship chip in cloud-computing services, as well as for their own AI offerings.

Nvidia along with Microsoft and Apple, are the only US stocks ever to exceed $3trillion in total value.