Nvidia on Tuesday surpassed Microsoft to become the world's most valuable company, with shares climbing 3.2% and market capitalization reaching $3.33 trillion (approximately ₹2,73,060 crore). The surge in Nvidia's market value has been driven by demand for its chips, which are the gold standard in the AI space. The company's shares are up more than 170% this year and have risen about 1,100% since their October 2022 low.
Blockbuster earnings and broadening investor enthusiasm over AI are supercharging Nvidia's rally. That fervor has been reflected in Nvidia’s market value, which took only 96 days to go from $2 trillion to $3 trillion.
Microsoft, one of the two other companies to reach those rarefied levels, took 945 days to go from $2 trillion to $3 trillion while Apple took 1,044 days to make the leap, according to Bespoke Investment Group.
Previously, just 11 U.S. companies since 1925 have reached the top spot in market value on a closing basis, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
Nvidia’s earnings are supporting its stock price. Revenue more than tripled to $26 billion in the latest quarter, while net income jumped seven-fold to $14.9 billion. Revenue for the current fiscal year is expected to roughly double to $120 billion, and then rise another 33% in fiscal 2026, to $160 billion, according to LSEG data.
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