Nvidia surpasses Microsoft to become world’s most valuable company

Nvidia (NVDA.O) clinched the title of world’s most valuable company on Tuesday, surpassing tech giant Microsoft (MSFT.O), as its high-performance processors take center stage in the race to dominate artificial intelligence technology.
The chipmaker’s shares rose 3.5% to $135.58, pushing its market capitalization to $3.335 trillion. This milestone comes shortly after Nvidia overtook Apple (AAPL.O) to claim the position of the second most valuable company.
Nvidia’s remarkable ascent in market worth over the past year reflects the fervor on Wall Street driven by optimism surrounding emerging AI technologies.
Despite Nvidia’s stock surge boosting the S&P 500 (.SPX) and Nasdaq (.IXIC) to new highs, some investors express concerns about potential risks if spending on AI technology slows down.
“Nvidia dominates the market; we’re all just participants,” remarked Steve Sosnick, chief market strategist at Interactive Brokers.
Reuters Graphics indicate Nvidia has also become the most heavily traded company on Wall Street, with daily trading volumes averaging $50 billion, far surpassing Apple, Microsoft, and Tesla (TSLA.O), each averaging around $10 billion, according to LSEG data. Currently, Nvidia represents about 16% of total trading in S&P 500 companies.