Just one day after Nvidia briefly surpassed Microsoft to become the world’s most valuable company, Nvidia’s shares fell by more than three percent on Thursday. This decline allowed Microsoft to reclaim its position as the most valued company, with Nvidia’s market capitalization dropping to $3.22 trillion, while Microsoft’s rose to $3.3 trillion.
Currently, Nvidia, Microsoft, and Apple are the leading contenders for the title of the world’s most valuable companies, each boasting market capitalizations exceeding $3 trillion. Analysts from Wedbush Securities, based in California, have predicted a competitive race among these tech giants to reach a $4 trillion market cap over the next year. They emphasized the role of AI technology in driving growth for companies like Nvidia, Apple, and Microsoft, enabling them to monetize their vast user bases across both enterprise and consumer sectors.
Nvidia’s stock has surged by more than 200 percent in the past year, fueled by high demand for chips essential for running generative AI models. This demand underscores the increasing importance of AI in the tech industry, with Nvidia positioned uniquely as a company that heavily profits from AI technologies, unlike Microsoft, which both invests in and profits from AI initiatives.
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