Nvidia overtakes Microsoft as world’s most valuable company

While Microsoft has certainly benefitted from the tech boom in recent years, becoming a $3 trillion company, Nvidia has been outpacing the industry at large in recent years. Nvidia's stock price has been skyrocketing, and just yesterday, it hit a new all-time high, making Nvidia the most valuable company in the world.

Nvidia is the world's most valuable company after hitting a market cap of $3.34 trillion USD at close of trading on the 18th of June 2024. The final stock price rose above $135 per share, giving it a higher market cap than Microsoft and Apple, which have been trading blows for the title of ‘richest tech company'. Now, Nvidia is right there at the very top with them.

Nvidia's sharp rise has been largely driven by AI, a field in which Nvidia holds a lot of market share thanks to its high-performance GPUs, designed to accelerate AI. Nvidia got in on AI acceleration early and it has paid off big time. For reference, Nvidia's stock price was trading at less than $4 as recently as June 2019. This was just after Nvidia began selling RTX graphics cards for the first time and really began doubling down on AI technology.

Analysts at Wedbush Securities said in an investor note this week that Nvidia, Microsoft and Apple will be racing to a $4 trillion market cap over the next year.

KitGuru Says: Whether or not this current pace in tech is sustainable is up for debate. Do you think Nvidia will eventually hit $4 trillion? 

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