Nvidia chips play a key role in software with artificial intelligence. This is driving up share prices – and driving Nvidia to a milestone that was once unimaginable.
The AI boom made the chip company Nvidia the most valuable company on the stock exchange on Tuesday. In late US trading, Nvidia had a market value of just over $3.33 trillion, overtaking the software giant Microsoft. This was due to a price increase of around 3.5 percent, while Microsoft’s stock fell slightly.
Nvidia plays a key role in artificial intelligence (AI) applications. The company’s chip systems are used to train AI software in data centers – and they are also increasingly being used to operate them. Rivals such as Intel or AMD have so far been unable to pose any significant competition to Nvidia in the market.
In the top group in terms of market value, alongside Nvidia and Microsoft, Apple is also one of the companies. The announcement of new AI functions last week caused a share price boost for the iPhone company. Microsoft, meanwhile, is in the process of bringing artificial intelligence into its products through a multi-billion dollar pact with ChatGPT inventor OpenAI.
Nvidia is profiting from all of this and is selling thousands of expensive chip systems to Microsoft, Google and the Facebook group Meta, among others. The jump in share price on Tuesday was preceded by the announcement of a cooperation with the computer group Hewlett Packard Enterprise for technology for AI use in companies.
Microsoft had a market capitalization of $3.327 trillion in late trading on Tuesday, while Apple was at $3.277 trillion.
Source: Stern
