UPDATE - Nvidia's market cap surpasses Microsoft to become world's most valuable company

Chipmaker's market cap passed $3 trillion mark June 5 to overtake Apple as world's 2nd most valuable firm

UPDATES WITH BACKGROUND

By Ovunc Kutlu

ISTANBUL (AA) - Nvidia's market cap surpassed Microsoft's on Tuesday as the chipmaker became the world's most valuable company.

The stock price of the California-based chipmaker climbed 3.23% to $135.21 at 1.10 p.m. EDT, giving it a market capitalization of $3.33 trillion.

Microsoft's stock price was trading around $447.21 with a daily loss of 0.26% with a market cap of $3.32 trillion.

Nvidia's market cap passed the $3 trillion mark June 5 to overtake Apple as the second most valuable company in the world at the closing bell on Wall Street.

With the feat, Nvidia became the third company in the US to hit the milestone after Apple and Microsoft, respectively.

Apple's stock was down 1.3% to $213.88 with a market value of $3.28 trillion.

Nvidia's record-breaking feats come as demand for artificial intelligence (AI) is booming globally and the company is increasing collaborations with tech companies.

The firm announced May 21 new AI performance optimizations and integrations for Microsoft's Windows operating system that help deliver maximum performance.

Microsoft, meanwhile, backs American AI company, OpenAI, which unveiled last month its latest model, named GPT-4o, which is much faster compared to previous models.

Nvidia also saw record financial results in the February-April period of the year.

The company's shares soared 12% on May 23 after reporting record revenue of $26 billion in the first quarter that ended April 28 -- up 262% from almost $7.2 billion during the same period last year.

The chipmaker also saw record quarterly data center revenue of $22.6 billion, which soared 427% from the same period in 2023; while net income jumped a massive 628% to almost $14.9 billion in the first quarter from approximately $2 billion in the same period last year.

Between Nvidia announcing a 10-for-1 stock split on May 22 and its execution on June 7, the company's shares jumped a whopping 27% in just 13 trading days.

Kaynak:

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