Nvidia unexpectedly surpasses Microsoft to become the company with the largest market capitalization in the world

Nvidia's stock price continues to surge with no sign of stopping, helping it surpass tech giants like Microsoft and Apple to become the world's most valuable company by market capitalization. Specifically, the chipmaker's stock rose 3.2% to $135.21, raising its market capitalization to $3.326 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.

Melissa Brown, Managing Director of Applied Research at SimCorp, said: “It’s a bit surprising that they’re clearly a business needing significant growth, and investors have obviously factored that in. My concern now is how long that growth can be sustained.”

Nvidia's stock price has been rising sharply.

Nvidia is the company with the fastest-growing stock value in recent years. Founded in 1993, the company officially went public in 1999. By July 2017, Nvidia's market capitalization had reached $100 billion for the first time.

In May 2023, Nvidia reached a market capitalization of $1 trillion for the first time. This past February, Nvidia's market capitalization surpassed $2 trillion for the first time, and on June 6th, the company's market capitalization exceeded $3 trillion for the first time.

Thus, it took Nvidia 18 years to reach a market capitalization of $100 billion, but it took the company less than a year to increase its market capitalization from $1 trillion to $2 trillion and less than four months to increase it from $2 trillion to $3 trillion.

Nvidia's astonishing market value surge over the past year has become symbolic of Wall Street's erratic volatility, fueled by optimism about emerging AI technology. While Nvidia's rally has propelled the S&P 500 and Nasdaq to record highs, some investors worry that this excessive optimism about AI could dissipate if there are signs of slowing spending on the technology.

To date, Nvidia has also become the most actively traded company on Wall Street, with recent average daily trading volumes of $50 billion, compared to around $10 billion for Apple, Microsoft, and Tesla. The chipmaker now accounts for approximately 16% of total trading volume of S&P 500 companies.

Source: https://vov.vn/kinh-te/nvidia-bat-ngo-vuot-microsoft-thanh-cong-ty-co-gia-tri-von-hoa-lon-nhat-the-gioi-post1102573.vov