(AFP) – Semiconductor designer Nvidia became the world’s largest capitalization on Tuesday, overtaking Apple and Microsoft, a symbol of the generative artificial intelligence (AI) fever that is shaking the markets.
The valuation of the Santa Clara (California) group rose to $3,338 billion, according to a calculation carried out by AFP. Around 5:30 p.m. GMT, the stock was up 3.45%. Nvidia remained slightly behind the absolute record reached the day before by Apple, at 3.376 billion dollars.
Since the launch of ChatGPT at the end of November 2022, the price of Nvidia shares has increased eightfold. The recent ten-fold split of the company’s shares on June 7 helped further accelerate the stock’s rise, making it more accessible to investors. The recent decline in bond rates also favors so-called bond values.
growth, including Nvidia. The group owes its popularity to its graphics cards (GPU), chips capable of handling a considerable amount of calculations, necessary for
development of generative AI programs.
Even if its major competitors like AMD or Intel, as well as “tech” giants like Apple or Microsoft, are chasing it, Nvidia maintains a comfortable lead in the market for semiconductors used for generative AI. “ Nvidia’s GPU chips are the tech industry’s new gold or oil“, estimate analysts at Wedbush Securities. For them, Nvidia, Apple and Microsoft are now engaged in “the race for 4,000 billion dollars in stock market valuation“.
For a quarter of a century, General Electric, ExxonMobil, Microsoft and Apple have succeeded one another on the top step of world capitalization, before the coronation of Nvidia.
