Nvidia has overtaken Microsoft as the most valuable public company in the world, with its stock rising more than 3% during trading on Tuesday. This surge in value has pushed Nvidia’s market value to $3.326 trillion, making it the new leader in the tech industry.
This milestone marks a significant shift in the tech sector, which had been dominated by Apple since the launch of the iPhone in 2007. Earlier this year, Apple lost its top spot to Microsoft due to concerns about iPhone demand, but Microsoft’s investment in ChatGPT-maker OpenAI helped boost its shares in the generative AI field.
Nvidia’s rise to the top spot can be attributed to its leading position in the artificial intelligence market, where it holds an 80% share of the processor market. The company’s stock has risen by more than 170% this year, making it a significant player in the tech industry.
One key factor driving up demand for Nvidia’s stock is a recent stock split by the company, which made its shares more accessible to individual investors. Before the split, Nvidia shares were priced at over $1,000 each, but the stock split on June 7 made them more affordable for investors. This move saw a significant increase in Nvidia’s market value by more than $100 billion in just one day.
On the other hand, Microsoft’s shares have only risen by 19% so far this year, a modest figure compared to Nvidia’s performance. Despite this setback, Microsoft remains a strong competitor in various fields such as cloud computing and gaming consoles. Retail investors are considered winners in this scenario as they have benefited from increased accessibility and affordability of Nvidia shares due to
