By T. Jayani, JadeTimes News
Nvidia has ceded the title of the world's most valuable company back to Microsoft following a decline in its share price by more than 3.5% on Thursday. The AI chip leader had briefly ascended to the top on Tuesday, boasting a market valuation of $3.34 trillion (£2.64 trillion). However, Nvidia's shares dropped to $130.78 on Thursday, reducing its market value to approximately $3.22 trillion, allowing Microsoft to reclaim the top position with a steady valuation exceeding $3.3 trillion.
Nvidia's surge has been driven by its critical role in producing chips essential for artificial intelligence, often likened to "the new gold or oil in the tech sector" by analysts. The competition among Nvidia, Microsoft, and Apple all valued over $3 trillion remains intense as they vie for the title of the most valuable company globally.
Though Nvidia's tenure at the top was short lived, experts anticipate a continuing rivalry among the three tech giants. Wedbush Securities noted earlier this week that the race to a $4 trillion market cap in tech will be closely watched over the next year, involving Nvidia, Apple, and Microsoft.
Nvidia's stock has soared due to the increasing demand for chips that power and train generative AI models, like OpenAI's ChatGPT. The company also saw significant benefits from the Bitcoin mining boom in 2020, which spiked sales of its graphics cards. Nvidia's rise has paralleled the growing fame of its CEO, Jensen Huang, who enjoys rock star status in his native Taiwan, enhancing his profile both locally and internationally.