California-based tech firm Nvidia Corporation has surpassed Apple and Microsoft to become the world’s highest-valued company. With a market capitalization of $3.329 trillion, Nvidia claimed the top spot, leaving Apple and Microsoft in second and third place, respectively, with values of $3.321 trillion and $3.279 trillion. This shift in rankings occurred on Tuesday, marking a significant milestone for Nvidia.
The rise in Nvidia’s stock value has been steady throughout the first two quarters of 2024. Starting the year at $48.16, the company’s shares have soared, driven by the growing popularity and potential of artificial intelligence (AI). Nvidia is widely recognized as a leading supplier of AI technology, and traders are optimistic about the future prominence and refinement of AI.
Steve Sosnick from Interactive Brokers LLC described Nvidia as the envy of the market, emphasizing the company’s exceptional performance and the reliability of its chips. Nvidia has consistently exceeded expectations, contributing to its remarkable growth.
However, not all experts share the same level of confidence in Nvidia’s continued success. Oliver Pursche from Wealthspire Advisors cautioned that any misstep by the company could lead to a significant correction in its stock. Investors are advised to exercise caution.