What Happened?
On Wednesday, shares of Nvidia, the famous semiconductor chip-making company, jumped more than 4%. This pushed Nvidia’s market value (market cap) to $3.763 trillion, making it the world’s most valuable company.
Nvidia has now overtaken Microsoft, which has a market cap of $3.658 trillion, and moved to the top spot.
Why Did Nvidia’s Shares Rise?
Nvidia’s share price rose by 4.33%, reaching a new record high of $154.10 per share.
This rise came after a report from Loop Capital, which increased its target price for Nvidia from $175 to $250.
The firm also kept a ‘Buy’ rating on the stock.
Loop Capital’s analyst Anand Bhatia told Reuters that:
“The market is entering a golden wave of adopting Generative Artificial Intelligence (AI), and Nvidia’s demand is stronger than expected.”
The Top 3 Companies Are Competing Closely
There’s tough competition among Nvidia, Microsoft, and Apple for the top position as the most valuable company.
Earlier this month, Microsoft became number one, beating Nvidia. But now, Nvidia has again taken the lead.
On the same day:
- Apple’s share price rose by 0.63%, giving it a $3.010 trillion market cap
- Apple remains the third most valuable company in the world
Top 10 Most Valuable Companies in the World (by Market Cap)
- Nvidia – $3.763 trillion
- Microsoft – $3.658 trillion
- Apple – $3.010 trillion
- Amazon – $2.250 trillion
- Alphabet (Google’s parent company) – $2.075 trillion
- Meta Platforms (Facebook) – $1.781 trillion
- Saudi Aramco – $1.569 trillion
- Broadcom – $1.244 trillion
- TSMC (Taiwan Semiconductor) – $1.155 trillion
- Tesla – $1.055 trillion
Summary:
Thanks to the growing use of AI technology, Nvidia’s demand is booming. As a result, its stock price is rising fast, making it the world’s most valuable company once again, ahead of Microsoft and Apple.
