Nvidia overtakes Microsoft to become the world's most valuable company in 2024

Shares in the chipmaker rose as much as 3.4% on Tuesday, reaching the US$ 3.3 trillion mark in market value

The relentless rise of Nvidia boosted its market value to the status of the world's most valuable company. The chipmaker's shares rose as much as 3.4% on Tuesday, reaching the US$ 3.3 trillion mark in market value and surpassing the Microsoft.

Just this month, Nvidia overtook Apple in market value for the first time since 2002, and the two have swapped positions in the rankings in recent days. Last week, the owner of the iPhone also briefly overtook Microsoft.

O ranking is yet another reminder that artificial intelligence has been the main focus of many investors, and Nvidia is at the center of the success of this technology, which has driven the New York Stock Exchange to its all-time highs this year.

The company has dominated the market with its highly sought-after chips that help power data centers performing complex computing tasks required by artificial intelligence applications. Demand for its H100 accelerators is increasing and helped boost the chipmaker's sales by more than 125% last year.

Microsoft, for its part, is also seen as an early winner in the artificial intelligence race due to its investments and partnerships with OpenAI, which created ChatGPT. This week, Apple's shares also rose after the company finally unveiled its plan to use the technology, finally pleasing investors.

Why do Nvidia's shares keep going up?

Nvidia is one of the main technology providers for the AI market - Microsoft, by the way, is one of its customers. Its product highlights are graphics processing units (GPUs), its clients' chips for gaming, cryptocurrency mining and AI. The company's focus on artificial intelligence caught the attention of Wall Street and it has since become one of the stock market's favorites.

Amid the euphoria over the possibilities of AI, Nvidia has accelerated its growth and could reach a market value of US$ 10 trillion by 2030, according to calculations by Beth Kindig, technology analyst at the I/O Fund.

We recently wrote an article about AI's impact on marketingworth a look.