Oct 15, 2024 08:15 AM IST
Nvidia shares reached a record high, nearing Apple’s market value. Investors are optimistic about Nvidia’s AI processors, driving stock up 2.4% to $138.07.
Shares of Nvidia closed at their highest ever with which the heavyweight AI chipmaker is on the brink of dethroning Apple as the world’s most valuable company. This comes as investors are betting on Nvidia’s current and next-generation AI processors owing to which the Jensen Huang-led company’s stock climbed 2.4% to reach $138.07.
Has Nvidia become world’s most valuable company before?
Yes, in June, Nvidia briefly became the world’s most valuable company. It was overtaken by Microsoft as the market capitalizations of both the companies have been neck-and-neck for several months.
Where does the market value of Nvidia, Apple and Microsoft stand?
Nvidia’s market value is at $3.39 trillion, just below Apple’s $3.52 trillion value and above Microsoft’s $3.12 trillion.
Read more: China moves to tax the ultra-rich for overseas investment gains
Nvidia, Apple and Microsoft account for about a fifth of the S&P 500’s weight, giving them a hefty influence in the index’s day-to-day gains and losses.
Why are Nvidia shares rising?
Nvidia has been Wall Street’s biggest winner from a race between Alphabet, Microsoft, Amazon and other major tech companies to dominate emerging AI technology. TD Cowen analysts wrote in a report, “We believe the major companies in AI … face an investment environment characterized by a Prisoner’s Dilemma — each is individually incentivized to continue spending, as the costs of not doing so are (potentially) devastating.”
Read more: Oil prices fall 3% as concerns ease on potential Iran supply disruption
Nvidia in August confirmed reports that a ramp-up in production of its upcoming Blackwell chips was delayed until the fourth quarter although the company downplayed the impact saying that customers were snapping up existing chips.
Stay updated with the…
See more
