Nvidia Becomes the World's Most Valuable Company

Computing infrastructure giant Nvidia surpassed Microsoft on Tuesday to become the world's most valuable company.

Nvidia Becomes the World's Most Valuable Company
SAN JOSE, CALIFORNIA - MARCH 18: Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Artificial Intelligence Conference. © Justin Sullivan/Getty Images

The American artificial intelligence chipmaker's market valuation exceeded $3.33 trillion, while Microsoft's market capitalization stood at $3.32 trillion. Just two weeks ago, Nvidia had also overtaken Apple for the second spot.

On Tuesday, Nvidia's shares rose 3.5% in early trading, reaching an all-time high of $135.58 per share. In contrast, shares of software giant Microsoft fell by 0.45%.

Both Nvidia and Microsoft are major players in the artificial intelligence boom. Nvidia is the largest supplier of AI chips and integrated software, while Microsoft is the biggest investor in OpenAI, the maker of ChatGPT.

Apple's shares dropped by 1.1% on Tuesday, leading to a decline in the iPhone maker's market capitalization.

Earlier this month, Nvidia completed a ten-for-one stock split, making its shares more affordable for small investors. A year ago, the company reached a market cap of $1 trillion, and on June 5, it hit $3 trillion, marking the fastest growth on record, driven by the AI surge. Many investors believe that the company's value will continue to rise.

Founded in 1993, Nvidia initially designed graphics cards for computer gaming. Later, it added features to its chips designed for machine learning, increasing its market share. In recent years, the boom in AI technology investment has led to explosive growth for the company.