Nvidia becomes the first market capitalization ahead of Apple and Microsoft

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Semiconductor designer Nvidia became the world’s largest stock market capitalization on Tuesday, overtaking Apple and Microsoft, emblematic of the generative artificial intelligence (AI) fever that is rocking markets.


– Shares of Nvidia rose 3.69% on the New York Stock Exchange this Tuesday, June 18th.

The stock market valuation of the Santa Clara (California) group rose to 3,352 billion dollars, according to a calculation made by AFP. Shares of Nvidia were up 3.69% on the New York Stock Exchange this Tuesday, June 18th around 6:30 p.m. “We’ve been waiting for this for a while.responded Angelo Zino, CFRA analyst. “AI is changing the landscape. In the real world, but also in the markets”he added, emphasizing that the industry is now the semiconductor industry The most important on Wall Street.

Nvidia remained slightly behind the absolute record achieved a day earlier by Apple, in 3.376 billion dollars. Now, Nvidia, Apple and Microsoft make up around 10% of all publicly traded companies in the world. Since the launch of ChatGPT in late November 2022, Nvidia’s share price has increased eightfold. Recent division by ten of the company’s shares on June 7 helped further accelerate the growth of the stock price, making it more affordable for investors. A drop in bond rates kindness also so-called growth stocks including Nvidia.

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Comfortable leadership in the generative artificial intelligence sector

The group owes its popularity to his graphics card (GPU), chips capable of handling a significant amount of calculations necessary for the development of generative AI programs. Generative AI allows the user to retrieve text, photo, video, lines of code or sound by asking a request in ordinary language. To make this feature possible, developers are piling on billions of examples interviews and documents in order to predict the best response to the request.

Although its main competitors like AMD or Intel, as well as “tech” giants like Apple or Microsoft, are launched, Nvidia maintains a comfortable lead in the semiconductor market used for generative AI. The company even picked up the pace by introducing a new processor in early June, less than three months after the introduction of the previous model in a sector historically used to stagger its versions by several years.

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To 4,000 billion?

“Nvidia GPU chips are the new gold or the new oil of the technology sector”, Wedbush Securities analysts estimate. For them, Nvidia, Apple and Microsoft are now dealing with “The Race for a $4 Trillion Stock Market Valuation”. For a quarter of a century, General Electric, Cisco, ExxonMobil, Microsoft and Apple took turns at the top of the world capitalization before Nvidia was crowned.

“On Wall Street, where investors’ capital is currently flowing, the ‘magnificent seven’ continue to dominate trading”commented Konstantin Oldenburger, CMC Markets analyst, referring to seven capital letters giants of the technology sector that have been dragging the indices for 18 months. “Nvidia is currently the most valuable company in the world. There is no photo”said Adam Sarhan, an analyst at 50 Park Investments generative AIbut also computers and the cryptocurrency industry.

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