NVIDIA become the most expensive company in the world

The capitalization of the NVIDIA chip manufacturer exceeded the market value of Microsoft, thereby allowing the company to take the first place among the most expensive public companies in the world.

NVIDIA shares rose 3.08% yesterday to reach $135.02, which increased the company's market value to $3.326 trillion. At the same time, Microsoft shares fell 0.3% to $447.05, which led to a decrease in market value to $3.324 trillion. 

The sharp price increase is due to the development of artificial intelligence, which caused a surge in demand for the company's chips. It is worth noting that the first boom in Nvidia stock growth occurred during the development of cryptocurrencies in 2016-2018, which caused the company's value to rise to almost $200 billion. The next rapid increase in the company's price was observed during the coronavirus pandemic, when people massively used computers for activities from home. By 2021, Nvidia's price has increased to $800 billion.

In February 2024, NVIDIA overtook Alphabet, the parent company of Google, and entered the top 3 most expensive companies in the United States. At the auction on June 5, NVIDIA's market value exceeded $3 trillion for the first time. On the same day, the company overtook Apple, taking second place among the most expensive companies in the world.

Analysts believe that next year NVIDIA, Apple and Microsoft will come to the fore in the race for $4 trillion in capitalization in the technology sector.