Nvidia Stocks Surpass Microsoft in Becoming Most Valuable in Big Tech Market

By Jose Resurreccion

Jun 18, 2024 09:11 PM EDT

Nvidia Stocks Surpass Microsoft in Becoming Most Valuable in Big Tech Market
The logo of Nvidia is seen during Computex 2024 in Taipei on June 4, 2024.
(Photo : I-HWA CHENG/AFP via Getty Images)

Nvidia officially surpassed Microsoft Tuesday (June 18) as the world's most valuable company after its stock price rose to about 3.5%. 

Yahoo Finance reported that the tech giant's prominence in the market came after it took the second-place spot from Apple just two weeks ago. 

A single share of the company is currently valued at $135 per share, accumulating to a market capitalization of over $3.33 trillion, tipping past Microsoft's nearly $3.32 trillion market value. 

Nvidia's Market Rise by the Numbers

It is understood that Nvidia's shares appreciated by over 215% over the last year and by over 3,400% over the last half-decade. 

Year-to-date in 2024, the company gained by 175%, while Microsoft's stock value increased only 19%. 

Nvidia crossed into the trillion club in June 2023 and rapidly soared into its current value, achieving $2 trillion in March and $3 trillion earlier this month, making it the fastest on record. 

VCPost reported last month that the company had a strong first-quarter performance. However, other big tech companies that might transition from customers to competitors could still challenge its prime position. 

READ NEXT: Nvidia Faces Boycott Calls in China After CEO Jensen Huang Refers to Taiwan as a 'Country'

Nvidia's Contribution in Stock Market, Big Tech

The meteoric rise of Nvidia's stock value also meant that it was massive enough to contribute to and influence market trends. 

Its surge made it a top contender in the S&P 500 for achieving index-hitting record highs in 2024. This also meant Nvidia's rapid acceleration positively pulled the broader index's stocks upward. 

Forbes explained that the primary factor that reportedly contributed to the chipmaker's stellar market performance so far was the fact that it was creating semiconductors that could support sophisticated artificial intelligence (AI) software, such as OpenAI's ChatGPT and Elon Musk's xAI, making the company the tech industry's go-to supplier for AI chips and integrated software. 

Earlier this month, Nvidia CEO Jensen Huang announced during the keynote speech at the Computex conference in Taipei that his firm would release Blackwell Ultra, a high-powered version of its Blackwell semiconductor, in 2025. He also announced the company would release a new AI chip platform called Rubin in 2026, with an Ultra version planned for 2027. 

However, it is also understood that the Chinese AI startup DeepSeek's generative AI tool Coder, which is considered at par with ChatGPT, might not consider Nvidia as its semiconductor provider after the tech firm faced weak demand in China, and recently, after Huang, who was born in Taiwan in 1963, called the island a "country," a prospect that officials in Beijing refuse to recognize since the People's Republic in the mainland was founded in 1949. 

Another limiting factor for Nvidia is the current economic and geopolitical conflict between China and the United States. 

READ MORE: Nvidia Now World's Second-Most Valuable Company After Beating Apple's $3 Trillion Valuation

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