- Nvidia lost its position as the world’s most valuable company on Thursday
- On Tuesday, the chip-maker beat out Microsoft and Apple to the title with a market valuation of $3.34 trillion
- But shares have since fallen, reducing its valuation to around $3.22 trillion and allowing Microsoft to reclaim the title
Microsoft back as most valuable firm as Nvidia slips
Nvidia has lost its position as the world’s most valuable company to Microsoft following a 3.5% drop in its share price on Thursday. Nvidia briefly held the top spot from Tuesday, with a market valuation of $3.34 trillion. However, its shares fell to $130.78, reducing its valuation to around $3.22 trillion, allowing Microsoft to reclaim the title with a valuation exceeding $3.3 trillion.
Nvidia’s ascent was driven by its dominance in AI chip technology, described as the “new gold or oil in the tech sector.” Nvidia, Microsoft, and Apple, all valued at over $3 trillion, are in a tight race to be the world’s most valuable company. Analysts predict this competition will continue to intensify, with Wedbush Securities forecasting a race to a $4 trillion market cap between the three tech giants.
Nvidia’s stock surge is attributed to the rising demand for chips that power AI models like OpenAI’s ChatGPT, along with a significant boost from the 2020 Bitcoin mining boom that increased graphics card sales.