Nvidia recently experienced a decline in its share price by over 3.5%, resulting in Microsoft reclaiming its position as the world’s most valuable company.
The fluctuation in Nvidia’s stock market valuation, which briefly peaked at $3.34tn on Tuesday, dropped to approximately $3.22tn on Thursday, allowing Microsoft to maintain its steady value of over $3.3tn.
Nvidia’s prominence in the realm of artificial intelligence (AI) chips has been a driving force behind its ascent, with analysts dubbing these chips as the “new gold or oil in the tech sector.”
The competition for dominance among tech giants with valuations exceeding $3tn—Nvidia, Microsoft, and Apple—is intensifying.
Although Nvidia briefly seized the top spot, analysts foresee a continued fierce rivalry among these firms.
Wedbush Securities noted in a recent statement that the pursuit of reaching a $4 trillion market cap in the tech industry will prominently feature Nvidia, Apple, and Microsoft.
Nvidia’s surge in stock value can be attributed to the increasing demand for chips essential in training and operating generative AI models like OpenAI’s ChatGPT.
Additionally, the company experienced substantial growth in sales of its graphics cards due to the surge in Bitcoin mining activities in 2020.
Jensen Huang, Nvidia’s CEO, has also contributed to the company’s rising profile, particularly in his native Taiwan, where he enjoys a celebrity-like status akin to a rock star.