Nvidia Beats Microsoft to Become World’s Most Valuable Company Amid Soaring Demand for AI Chips

Nvidia has surpassed Microsoft to become the world’s most valuable company, largely due to the crucial role its chips play in the fast-evolving artificial intelligence market. The chipmaker’s shares rose by 3.2% to $135.21, pushing its market capitalization to $3.326 trillion. This achievement comes shortly after Nvidia overtook Apple to claim the second most valuable company title. The stock has seen an impressive 173% surge this year, while Microsoft’s shares have risen by about 19%.

According to Wasif Latif, President and Chief Investment Officer at Sarmaya Partners in Princeton, New Jersey, there has been significant buying interest from both hedge funds and retail investors in Nvidia. This trend is likely to continue, given the availability of specific thematic funds and leveraged funds that focus on Nvidia. As long as the company maintains its strong earnings growth, its stock is expected to perform well. However, it is important to note that this rapid growth is not sustainable indefinitely. Eventually, there may be a slowdown in earnings growth, which could lead to a correction in the stock price. Despite this, for the time being, Nvidia is anticipated to maintain its growth trajectory and secure its position as the largest company in the world.