Nvidia (NASDAQ: NVDA) is now the most valuable corporation in the world. Nvidia’s top-tier processors, which are critical in the quickly expanding field of artificial intelligence (AI), are what drove this milestone.
Nvidia’s market value increased to $3.335 trillion on Tuesday when its shares saw a 3.5% increase to $135.58. This accomplishment comes after Apple (NASDAQ: AAPL) was surpassed by Nvidia as the second most valued firm. On the other hand, Apple’s market worth dropped to $3.286 trillion with a 1% loss in its stock, while Microsoft’s value dropped to $3.317 trillion following a 0.45% decline in its share price.
Wall Street’s increased enthusiasm for AI technologies is reflected in Nvidia’s impressive year-over-year gain in market value. Strong demand for the company’s processors has caused its shares to nearly treble this year. Currently, Nvidia’s shares are traded more often on Wall Street than those of Apple, Microsoft, Tesla, and Apple (NASDAQ: TSLA), with an average daily turnover of $50 billion.
There is intense competition amongst Microsoft, Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOGL) to improve their AI technologies. Because of the great reputation of Nvidia’s AI chips, the company has benefited greatly from the AI boom.
“Nvidia is gaining a lot of favorable attention and has made a lot of smart strategic decisions. Oliver Pursche, Senior Vice President of Wealthspire Advisors in New York, cautioned investors against making any small mistakes as they could result in a significant stock correction.
Due to a significant gap between supply and demand for its graphics processors, Nvidia’s stock increases have continuously outpaced Wall Street predictions. Executives at Nvidia suggested that supply of their Blackwell AI processors may not keep up with demand long into the upcoming year. Based on LSEG statistics, Nvidia was trading at 44 times projected earnings recently, compared to over 84 a year earlier. Nvidia recently divided its stock 10 for 1 in an effort to draw in private investors.