Nvidia (NVDA.O) became the most valuable company in the world after its share price rose to an all-time high by 3.5% to US$ 135.58, lifting its market capitalisation to US$ 3.335 trillion.
Microsoft’s stock market value was US$ 3.317 trillion, down by 0.5%. And Apple’s stock market value was US$ 3.286 trillion, down by 1%.
The price surge was triggered by news that the chipmaker may secure a 20% weighting in the technology select sector SPDR Fund (XLK) in the S&P 500 based on valuation rules. This could potentially lead to more than $10 billion of Nvidia’s shares being acquired by the Exchange Traded Fund (ETF).
Also this stock price surge was driven by optimisation of investors in the fast emerging AI technology.
Nvidia is considered as a frontrunner in the AI-technologies and holds approx. 80% of the market share in AI chip manufacturing.
Nvidia has emerged as the biggest AI winner since 2023, primary due to its advanced Graphic Processing Units (GPUs), which specialise in supercomputing capabilities supporting generative AI training.
