Skip to main content

Nvidia eclipses Microsoft as world's most valuable company

A sign for a Nvidia building is shown in Santa Clara, Calif., May 31, 2023. (Jeff Chiu / AP Photo, File) A sign for a Nvidia building is shown in Santa Clara, Calif., May 31, 2023. (Jeff Chiu / AP Photo, File)

Nvidia became the world's most valuable company on Tuesday, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a race to dominate a surge in artificial intelligence technology.

Shares of the chipmaker climbed 3.5 per cent to US$135.60, lifting its market capitalization to US$3.336 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.

Microsoft's stock market value was US$3.325 trillion as its shares dipped 0.2 per cent.

Apple's stock slipped 1.3 per cent, putting its value at US$3.278 trillion.

Nvidia's stock has surged about 173 per cent so far this year, compared with a rise of about 19 per cent in Microsoft shares, with demand for its top-of-the-line processors outpacing supply. Tech giants Microsoft, Meta Platforms and Google-owner Alphabet are competing to build out their AI computing capabilities and dominate the emerging technology.

Tuesday's gain lifted Nvidia's stock to a record high and added over US$103 billion to its market capitalization.

Nvidia commands more than 80 per cent of the market share for AI chips, making it a major winner from surging AI development. Since its blowout forecast about a year ago, the company has consistently breezed past Wall Street's lofty expectations for revenue and profit, with demand for its graphics processors far outstripping supply as companies rush to embed AI applications.

Nvidia executives said in May that demand for its Blackwell AI chips could exceed supply "well into next year." Increasing the appeal for its highly valued stock among individual investors, Nvidia recently split its stock 10-for-one, effective June 7.

"A stock split can reduce the price per share, making it more affordable for individual investors to buy. With Nvidia doing a 10:1 stock split, retail investors are the real winners here," said Sam North, market analyst at investment platform eToro.

The company's market value expanded from US$1 trillion to US$2 trillion in just nine months in February, while taking just over three months to hit US$3 trillion in June.

Sharp increases in analysts' expectations for Nvidia's future earnings have outpaced its stellar stock gains, resulting in a fall in the stock's earnings valuation.

Nvidia is trading at 44 times expected earnings, down from over 84 times expected earnings about a year ago, LSEG data showed.

(Reporting by Shristi Achar, Medha Singh and Ankika Biswas; Editing by Anil D'Silva, Shounak Dasgupta and Lisa Shumaker) Top Stories

Latest on the Trump rally shooting: Former president injured but 'fine' after attempted assassination, shooter and one attendee are dead

Former U.S. president Donald Trump was the target of an apparent assassination attempt Saturday at a Pennsylvania rally, days before he was to accept the Republican nomination for a third time. A barrage of gunfire set off panic, and a bloodied Trump, who said he was shot in the ear, was surrounded by U.S. Secret Service and hurried to his SUV as he pumped his fist in a show of defiance.


opinion Why 'paying yourself first' is the key to a comfortable retirement

One of the most effective retirement savings strategies is to pay yourself first. In his personal finance column for, Christopher Liew outlines strategies for consistently saving and investing over time and building a solid nest egg.

Should you wait to buy or sell your home?

The Bank of Canada is expected to announce its key interest rate decision in less than two weeks. Last month, the bank lowered its key interest rate to 4.7 per cent, marking its first rate cut since March 2020.

Local Spotlight

Stay Connected