AI companies specializing in the development of artificial intelligence-related products experienced significant gains in market capitalization by the end of June. Chipmakers, in particular, reaped the benefits of the AI-centric market. Notably, Nvidia briefly surpassed Microsoft to become the world’s most valuable company. However, concerns over its high valuation and profit booking led to a short-lived gain.
According to data from LSEG, Nvidia emerged as the top global company by market capitalization, followed by Apple, with Microsoft securing the third spot. Amazon and Broadcom claimed the fourth and fifth positions, respectively. Microsoft’s market capitalization increased by 7.6%, while Apple’s rose by 9.6% over the past month. Amazon’s enthusiasm for AI propelled it to reach a market capitalization of $2 trillion, securing the fourth spot. Broadcom witnessed a 20% jump in capitalization after raising its forecast for AI-related chips by ten percent and announcing a stock split, capitalizing on the rally in its shares.
By the end of June, data from LSEG showed Microsoft reclaiming the top spot in terms of market capitalization, followed by Apple, with Nvidia in third. Alphabet Inc. ranked fourth, and Amazon held the fifth position. Nvidia, among the key players, demonstrated a robust performance in June, closely competing with tech giants. The market’s interest in artificial intelligence played a significant role in Nvidia’s rise. The company’s chips play a pivotal role in training and running advanced AI models like OpenAI’s ChatGPT.
Nvidia’s transformation from a $300 billion entity into a major force in the tech industry has been widely acknowledged. Its cutting-edge technology is in high demand from other Silicon Valley giants. Jensen Huang, Nvidia’s CEO, described this period as a new “industrial revolution” where generative AI is poised to revolutionize the global economy through intelligent computing. Major players like Google, Microsoft, and Amazon have adopted Nvidia’s “Hopper” series of graphic processing units for their cloud services.