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NVIDIA Overtakes Microsoft in Market Cap Race Fueled by AI Boom

AInvestTuesday, Oct 8, 2024 2:00 am ET
1min read

Recent developments have seen NVIDIA surpass Microsoft in market capitalization, reaching $3.13 trillion and becoming the world's second-largest company, just behind Apple at $3.37 trillion. This milestone was achieved as NVIDIA's stock climbed more than 2% on Monday.

The surge in NVIDIA's valuation is largely attributed to the booming demand within the artificial intelligence sector. The substantial need for AI chips is driving the company's impressive performance, significantly boosting both revenue and stock price. Since the beginning of the year, NVIDIA's stock has more than doubled.

In the past few months, NVIDIA and Microsoft have been closely competing for market cap rankings. Earlier this year, in June, NVIDIA momentarily took the lead as the company with the highest market capitalization, only to be overtaken by Apple later. Analysts suggest that with strong AI expenditure trends and favorable seasonal factors, NVIDIA's stock could continue to rise, potentially maintaining its position ahead of Microsoft and even surpassing Apple in the long term.

Moreover, NVIDIA's founder and CEO, Jensen Huang, has seen a substantial increase in his personal wealth alongside the company's stock price surge. His net worth has reached $109 billion, surpassing the total market value of Intel, which stands at $96.5 billion, ranking him as the 13th wealthiest individual globally.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.