Nvidia becomes world’s most valuable company
The chipmaker’s market capitalisation surged to $3.335 trillion after a 3.5% rise in its share price. Nvidia’s market influence has significantly boosted indices like the S&P 500 and Nasdaq.
Nvidia has risen to become the world’s most valuable company, surpassing Microsoft and Apple, driven by its high-end processors central to AI technology. Nvidia’s shares increased by 3.5%, boosting its market capitalisation to $3.335 trillion. This rapid rise in value highlights Wall Street’s enthusiasm for AI, though some investors are cautious about potential over-optimism.
Nvidia has also become the most traded company on Wall Street, with daily turnover averaging $50 billion. Its stock has nearly tripled this year, reflecting strong demand for its top-of-the-line processors, considered superior to competitors. Tech giants like Microsoft, Meta, and Alphabet are competing to enhance their AI capabilities, further fueling Nvidia’s growth.
Despite the optimism, experts warn that even a slight misstep could lead to significant stock corrections. Nvidia’s impressive market value expansion, from $1 trillion to $3 trillion in just over a year, is evidence of its strong performance. The company’s consistently exceeding Wall Street’s expectations has solidified its position as a fundamental player in the AI development surge.
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