Nvidia leapfrogs Microsoft and Apple to become the world’s most valuable company

Nvidia has leapfrogged Microsoft and Apple to become the world’s most valuable company as it cashes in on the artificial intelligence boom.

Shares in the US chip-maker rose more than 3 per cent in early trading yesterday – taking its value to $3.33 trillion (£2.6 trillion).

That surpassed both Apple and Microsoft, which were worth $3.32 trillion and $3.28 trillion respectively. 

The entire FTSE 100 of the London stock market’s leading firms is valued at £2.5 trillion.

Nvidia – one of the so-called ‘Magnificent Seven’ technology stocks in the US – has almost tripled in value since the start of this year and is up nearly ten-fold since the beginning of 2023. 

AI champion: Shares in US chip-maker Nvidia rose more than 3% in early trading yesterday – taking its value to $3.33 trillion (£2.6 trillion)

The stock has enjoyed a major lift in the past month after it revealed revenues hit £20billion in the three months to the end of April.

That was up 262 per cent from the year before and smashed Wall Street estimates.

Chief executive Jensen Huang said demand was ‘so strong’ as he pushed back against fears that this momentum would be fading any time soon.

Amazon, Google, Facebook-owner Meta and Microsoft have all said they will need to spend more on the chips and data centres required to train and operate their AI systems in the coming months.

Founded in 1993, the story of the world’s most valuable chip-maker started at a Silicon Valley diner, with Huang and two other engineers, Chris Malachowsky and Curtis Priem.

Uncertain exactly what their business would look like, their strategy was to place early bets on markets that barely existed at the time, starting out with PC gaming and graphics processing.

This proved a major success, with their graphics processing unit now essential in the world of gaming in popular titles such as Call Of Duty. 

But its most recent bet in the world of AI has proved its most lucrative, making it the first semiconductor company to rack up a $1 trillion market valuation in May last year.

Dan Ives, tech analyst at Wedbush Securities, said: ‘The Godfather of AI Jensen Huang and Nvidia are leading this revolution and it’s a race to $4 trillion market cap with Nvidia, Microsoft and Apple battling for the top spot.’

Read more at DailyMail.co.uk