American multinational technology company, Nvidia has emerged as the world’s most valuable company following the rise in its share price to an all-time high on Tuesday.
Nvidia’s stock ended the trading day at nearly $136, up by 3.5% to become more valuable than Microsoft after the firm surpassed Apple earlier in the month.
BBC reports that Nvidia makes computer chips needed for artificial intelligence (AI) software, and demand for its products has boosted its sales and profits over the last few years.
Investors are of the view that Nvidia’s earnings can grow even more, and this has caused its share price to soar, though some have questioned its sky-high valuation.
Tuesday’s share price rally means the market now values the company at $3.34tn (£2.63tn), with the price having nearly doubled since the start of this year.
Nvidia stock was worth less than 1% of its current price eight years ago, however, competition among AI developers is fierce.
Microsoft, Google-owner…
Source: Leadership Newspaper
