Nvidia’s market capitalization overtook Saudi Arabia’s state oil company Aramco, making the U.S. chip maker the world’s third most valuable company after the latest trading session in New York, Bloomberg reported.
Nvidia ended Friday’s trading session with a market value of $2.06 trillion, surpassing the two trillion mark for the first time, while Aramco fell slightly to $2.03 trillion, Bloomberg reported.
Nvidia was already the third most valuable US company, behind only Microsoft ($3.08 trillion) and Apple ($2.77 trillion), but it was overtaken by Aramco as the company with the largest market capitalization worldwide.
Nvidia shares are up more than 66% since the start of 2024, with the latest big gain coming after the company’s reported financials again beat analysts’ expectations.
On January 24, the company’s total market capitalization surpassed the $1.5 trillion mark for the first time, meaning that Nvidia’s stock market value has increased by more than $500 billion in less than a month and a half.
Nvidia is the new star of the US stock market
The impressive stock market rise of Nvidia, a company known mostly only to gamers for its graphics cards for years, has been driven by massive enthusiasm for artificial intelligence and the fact that it dominates the graphics processing unit (GPU) market. advanced, required by AI systems for their complex calculations.
Investor confidence in the potential of artificial intelligence led to a record rally in the US stock market last year, with technology companies among the biggest winners.
But since the beginning of 2024, the situation has changed: technology companies with businesses related to artificial intelligence continue to show a strong upward trend, while enthusiasm for the sector as a whole has been less restrained.
For example, the share price of Apple, which does not seem to have started the AI race as it did with electric cars, has fallen since the beginning of the year, allowing Microsoft to regain the title of the most valuable company in the world as the main financial backer of OpenAI.
As for Nvidia, its stock price is now at $841, down from $152 on Dec. 22, 2022, a day before the launch of ChatGPT, a chatbot developed by OpenAI that created a huge buzz around artificial intelligence systems.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.