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  • 21 Jul, 2024

Nvidia's Stock Surge Makes It the World's Most Valuable Company

Nvidia's Stock Surge Makes It the World's Most Valuable Company

Nvidia's stock price jumped over 3% on Tuesday, making it the world's most valuable company and surpassing tech giant Microsoft. Nvidia's shares rose 3.5% to $135.58, boosting its market capitalization by over $110 billion to $3.335 trillion. This rise came shortly after it overtook Apple to become the second most valuable company. Nvidia's market value grew from $1 trillion to $2 trillion in just nine months and reached $3 trillion in just over three months.  

Microsoft's share price dropped 0.45%, bringing its market value to $3.317 trillion, while Apple's share price fell over 1%, reducing its value to $3.286 trillion. Nvidia's share price has nearly tripled this year, compared to a 19% increase in Microsoft's shares. Last week, Nvidia conducted a 10-for-1 stock split, making its shares more accessible to individual investors.  

Nvidia's stock rally has driven the S&P 500 and Nasdaq to record highs and made Nvidia the most traded company on Wall Street, with an average daily turnover of $50 billion, compared to around $10 billion for Apple, Microsoft, and Tesla. Nvidia now accounts for about 16% of all trading in S&P 500 companies.  

The surge in Nvidia's market value is fueled by strong demand for its AI processors, considered superior to competitors' products. Many investors see Nvidia as the biggest beneficiary of the rapid development in artificial intelligence.