US chip maker Nvidia stocks soared 3 per cent on Tuesday as the company supplanted Microsoft as the world's most valued firm. As of June 18, Nvidia's market cap was calculated at $3.335 trillion, boosting Wall Street to a lifetime peak at 5,487.03 when market closed.
This comes days after the chip maker overtook Apple to become the second largest company in terms of market capitalisation. In just nine months, Nvidia increased its market cap from $1 trillion to $2 trillion in February. And it took only three months for the firm to cross $3 trillion.
The latest rally in Nvidia market cap comes amid the company's decision to split its stock 10-for-1 ratio, drawing more individual investors to jump on the bandwagon. The stock zoomed 180 per cent in 2024 compared to 19 per cent climb by Microsoft.
The top second and third companies, Microsoft and Apple, saw their share prices slipping 0.45 per cent and 1 per cent respectively on Tuesday.
Amid growing focus on AI, several tech giants have shifted their priority to the sector in a bid to claim their dominance in the market. Microsoft has been established its foothold in the sector with investments in ChatGPT maker OpenAI, while iPhone-maker Apple is a late entrant in the field. Apple's latest announcement regarding its AI plans have wooed investors to pick the stock.
Other big players in the race include Facebook parent Meta Platforms and Google-parent Alphabet.
What is Nvidia CEO's net worth?
With the chip maker rallying, Nvidia CEO Jensen Huang, who owns 3 per cent stake in the firm, has become the world's 11th wealthiest person, as per Forbes' real-time billionaire list.
As per latest figures, Huang's net worth increased by $4 billion to around $119 billion. In January 2024, his net worth was $77 billion, according to Forbes.