Nvidia Overtakes Microsoft As World's Most Valuable Company

(RTTNews) - Chipmaker Nvidia Corp. has become the world's most valuable company, overtaking tech major Microsoft Corp., on the strength of surging demand for artificial intelligence or AI chips worldwide.

The company now has a market cap of $3.335 trillion, compared to Microsoft's $3.317 trillion.

Nvidia on June 5th had breached the $3 trillion mark in valuation to become the second most valuable company overtaking tech giant Apple Inc., which now stands at $3.286 trillion market cap.

Nvidia stock price, which has surged significantly in recent times, reached $135.58 at the market close on Tuesday, up 3.51% from the previous day. In the extended trading, the shares gained 0.6 percent further to reach $136.40.

Nvidia shares were gaining particularly since the chipmaker in early June announced plans to launch its next generation of AI chips. Ahead of the tech expo Computex in Taiwan, the company's Chief Executive Officer Jensen Huang announced the plan to release Blackwell Ultra, a high-powered version of its Blackwell chip, in 2025, and a new AI chip platform, Rubin, in 2026. The company also plans to debut an Ultra version of Rubin in 2027.

During the event, he had told the crowd that "the next Industrial Revolution has begun." Nvidia also introduced new tools and software models on the eve of the trade show.

The company, which has pledged to release new AI chip technology on a one-year basis, in March had launched its previous AI super chip Blackwell GPU, which is said to do some tasks 30 times faster than its predecessor.

The Blackwell model is still in production and expected to ship to customers later in 2024. The Blackwell platform succeeds the NVIDIA Hopper architecture, which was launched two years ago.