US computer chip maker Nvidia has become the world’s most valuable company after it reached an all-time high valuation of 3.34 trillion dollars (£2.63 trillion) on Tuesday.
The firm’s stock price rose more than 3% during the trading day to end at nearly 136 dollars (£107), making it more valuable than tech giant Microsoft, which had held the most valuable title.
The company had already overtaken Apple in valuation earlier this month.
Nvidia is one of the key makers of computer chips required to power artificial intelligence (AI) software, a technology which has exploded in popularity in recent years thanks to the emergence of generative AI products such as ChatGPT, and the rush to adopt the technology in order to keep up with the sector’s latest trends.
As a result, demand for Nvidia products has soared, boosting the company’s sales and profits as tech giants including Microsoft, Google, Meta, Amazon and Apple battle to create new AI-powered products.
The increasing focus on AI products from the biggest tech companies has seen some investors suggest that Nvidia’s earnings could continue to grow, which has pushed up the company’s share price further.
The rise on Tuesday saw the company’s valuation reach 3.34 trillion dollars (£2.63 trillion), a valuation which is now more than 180% higher than it was at the start of the year.
Eight years ago, the company’s stock was worth less than 1% of its current price.
The rise of the tech company has also seen its chief executive, Jensen Huang, become a more prominent figure.
He has attained such a celebrity status that Meta boss Mark Zuckerberg even recently said Mr Huang, who is known for his signature leather jacket, is “like Taylor Swift, but for tech”.
Daniel Bathurst, head of product at AI start-up Nscale, said Nvidia’s rise highlights just how prominent a sector AI has become.
“Nvidia’s relentless rise to the top of the leader board illustrates a crucial point: powerful hardware is the foundation upon which the AI revolution is built,” he said.
“As enterprise and start-ups alike bet big on AI, more players are entering this arena and catching up quickly. In this battleground for AI spend, constant innovation is king.
“But, while powerful chips are a key ingredient, the AI ecosystem is more than just hardware. We need a diverse offering at the chip, hardware, and software level to support a thriving, sustainable AI landscape.
“As AI continues to develop, collaboration and diverse innovation in every element of the infrastructure will be crucial to unlocking its full potential.”
