Nvidia has achieved another milestone by surpassing Saudi Aramco in market value, making the chipmaker the third most valuable public company in the world after Apple and Microsoft.
The company rose more than 2.5% to reach US$2.11 billion, after closing above $2 trillion for the first time on Friday. Meanwhile, Aramco's value fell to $2.01 trillion, according to data compiled by Bloomberg.
Nvidia becomes Tesla's successor as the market shifts from electric vehicles to artificial intelligence.
Nvidia shares have soared thanks to spectacular earnings that reaffirmed Wall Street's optimism on the potential of artificial intelligence to reshape the technology industry. The company dominates the market for graphics chips designed for complex computing tasks needed to power artificial intelligence applications that companies are rushing to develop.
The rebound has been relentless this year. The stock is up approximately 70% and has added about $883 billion in value.
Meanwhile, Aramco has fallen more than 5% this yearwith lower production as a result of Opec+ cuts and a possible follow-up offer from the Saudi government weighing on the stock.
For now we have to see What will be the behavior of the titles for the remainder of the week?.
Nvidia's rise is captivating the stock market and driving the S&P 500 index to new highs. But he also raises warnings about another investor darling that rose with dreams of a technological transformation, only to fall back to earth when those hopes turned to disappointment.
Those shares belong to Tesla Inc., which sparked its own mania in 2017when investors bet that electric vehicles would take over the world.
However, now, Tesla shares are down more than 50% from their 2021 peak, and other EV stocks that rose with it are shadows of their former selves. All of which should be sobering for Nvidia investors who see the stock as an open-ended bet on the future of AI. It should be remembered that the shares of this company tripled in 2023.
