(qlmbusinessnews.com Wed. 19th June, 2024) London, UK —

AI Chip Maker Nvidia Now the World’s Most Valuable Firm

Nvidia has become the world’s most valuable company after its share price soared to a record high on Tuesday.

The stock closed the trading day at nearly $136, up 3.5%, making it more valuable than Microsoft. It had already overtaken Apple earlier this month.

Nvidia, known for manufacturing computer chips essential for artificial intelligence (AI) software, has seen a significant boost in sales and profits over the past few years due to increased demand for its products.

Many investors are confident that Nvidia's earnings will continue to grow, propelling its share price higher. However, some have raised concerns about its high valuation.

Tuesday’s surge means the market now values Nvidia at $3.34 trillion (£2.63 trillion), with the share price almost doubling since the beginning of this year.

AI Chip Maker Nvidia Now the World’s Most Valuable Firm

Eight years ago, the stock was worth less than 1% of its current value.

Competition among AI developers is intense, with major tech firms such as Microsoft, Google-owner Alphabet, Meta, and Apple all vying to create leading AI products.

This competition benefits Nvidia, which controls the vast majority of the AI chip market.

Consequently, investors believe the company’s value will continue to rise. Nvidia’s sales and profit figures have consistently exceeded analysts’ expectations in recent years.

In May, following the release of its latest financial results, Quilter Cheviot technology analyst Ben Barringer commented that Nvidia had “once again cleared a very high hurdle.” He added, “Demand is showing no signs of switching off either.”

However, some remain cautious.

In February, Barclays credit analyst Sandeep Gupta suggested that Nvidia’s large market share could be difficult to maintain given the increasing number of competitors and questioned how Nvidia’s customers would monetise AI software.

This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.

To Help qlm business news bring you more new stories like this, please like, share and subscribe.

Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!

Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.

You May Also Like