A day after Nvidia dethroned Microsoft to become the most valuable company in the world, the company's shares declined more than three per cent on Thursday, making Microsoft the most valued company again.
Nvidia's stock price fell to $130.78 on Thursday, bringing down its market capitalisation to $3.22 trillion. Microsoft is valued at $3.3 trillion.
Nvidia, Microsoft, and Apple are the world's most valued companies, with a market cap of over $3 trillion. The three tech companies are in a horse race to claim the top spot in terms of market cap.
"We believe over the next year the race to $4 trillion market cap in tech will be front and centre between Nvidia, Apple, and Microsoft," California-based investment firm Wedbush Securities had said in a note earlier this week.
“This will be a tech market in which the strong will get stronger as AI technology helps Big Tech Stalwarts monetize their massive installed base across the enterprise (Microsoft, Oracle, Dell, Amazon, etc) and consumer landscape (Meta, Apple, Google) over the coming years,” an analyst at the investment firm has been quoted as saying.
Nvidia's stock price has risen over 200 per cent in a year, thanks to the increased demand for chips—which the analysts call "new gold or oil in the tech sector"—to run generative AI models.
“While Microsoft both spends and makes money in AI, Nvidia only makes money and lots of money and profits in AI. That's why you cannot spell Nvidia without AI," news agency Reuters quoted Jake Dollarhide, chief executive officer of Longbow Asset Management, as saying.
