June 19: Nvidia became the worlds most valuable company on Tuesday, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate artificial intelligence technology.
Shares of the chipmaker climbed 3.5% to $135.58, lifting its market capitalization to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.
Microsofts stock market value was $3.317 trillion as its shares dipped 0.45%. Apples stock slipped over 1%, leaving its value at $3.286 trillion.
Nvidias stunning surge in market value over the past year has become emblematic of a Wall Street frenzy driven by optimism about emerging AI technology.
While Nvidias rally has lifted the S&P 500 .SPX and Nasdaq .IXIC to record highs, some investors worry that unbridled optimism about AI could evaporate if signs emerge of a slowdown in spending on the technology.
"Its Nvidias market; we
e all just trading in it," said Steve Sosnick, chief market strategist at Interactive Brokers.
Nvidia has also become by far the most traded company on Wall Street, with daily turnover recently averaging $50 billion, compared to around $10 billion each for Apple, Microsoft and Tesla TSLA.O, according to LSEG data. The chipmaker now accounts for about 16% of all trading in S&P 500 companies.
Nvidias stock has nearly tripled so far this year, compared with a rise of about 19% in Microsoft shares, with demand for its top-of-the-line processors outpacing supply.
— Reuters
