NVIDIA Surpasses Microsoft as AI Demand Fuels Market Cap Surge to $3.13 Trillion
1min read On Monday, NVIDIA’s stock rose over 2%, boosting its market capitalization to $3.13 trillion, surpassing Microsoft to become the world's second most valuable company, with Apple retaining the top position at $3.37 trillion.
NVIDIA’s market cap surge is primarily driven by the burgeoning artificial intelligence (AI) sector. The substantial demand for AI chips has fueled significant growth in shipments and boosted the company’s performance and stock price. Since the beginning of the year, NVIDIA's stock has more than doubled.
For months, NVIDIA and Microsoft have been closely vying for market cap dominance. In June, NVIDIA briefly overtook Microsoft, but was eventually surpassed by Apple again. Analysts highlight that with robust AI spending and favorable seasonal trends, NVIDIA's stock may continue to rise and potentially outpace both Microsoft and Apple in the long run.
Additionally, NVIDIA’s CEO Jensen Huang has seen his personal wealth soar along with the company’s stock, reaching $109 billion, placing him 13th on the global wealthy list.
NVIDIA's stock climbed 4%, reaching its highest intraday level since July 11th. This climb occurred despite an absence of major new catalysts for the company itself. Interestingly, tech giants have increasingly showcased their reliance on NVIDIA’s advanced chips in their business developments.
Foxconn, during its annual tech event, revealed its construction of a large AI server manufacturing site in Mexico to meet the global demand for NVIDIA's latest GB200 system. Foxconn’s statement echoed NVIDIA’s foresight on the massive demand for advanced chips.
Simultaneously, Microsoft’s Azure cloud service boasted its acquisition of servers equipped with the GB200 chips, marking it as the first cloud service provider to implement the Blackwell system. This move underscores the competitive landscape around cutting-edge AI technology and infrastructure.
NVIDIA's influence extends into semiconductor manufacturing too. On Tuesday, the company announced that TSMC would use NVIDIA’s cuLitho platform to advance the physical limits of semiconductor production. With cuLitho, production can be significantly accelerated, achieving greater efficiency and reduced costs.
In the realm of memory suppliers, Samsung issued a rare apology following a delay in delivering HBM3E chips to a major customer, highlighting the intense competition in serving major players like NVIDIA, with SK Hynix and Micron as key suppliers.