Nvidia becomes world's most valuable company

Date:

Share post:


(Reuters) -Nvidia became the world’s most valuable company on Tuesday, dethroning tech heavyweight Microsoft, as its chips continue to play a central role in a race to dominate the market for artificial intelligence.

Shares of the chipmaker climbed 3.2% to $135.21, lifting its market capitalization to $3.326 trillion, just days after overtaking iPhone maker Apple AAPL.O to become the second most valuable company. The stock has surged about 173% so far this year, compared with a rise of about 19% in Microsoft shares.

COMMENTS:

STEVE SOSNICK, CHIEF MARKET STRATEGIST, INTERACTIVE BROKERS, NEW YORK, GREENWICH, CONNECTICUT

“It’s Nvidia’s market; we’re all just trading in it.”

“The roster of market leaders has changed before, so it’s not that surprising to see it alter again.”

OLIVER PURSCHE, SENIOR VICE PRESIDENT, WEALTHSPIRE ADVISORS, NEW YORK

“(Nvidia has) certainly been high flying and predictable I don’t think it ultimately matters. Nvidia has been getting a lot of positive attention and has been doing a lot of things very correctly but a small misstep is likely cause a major correction in the stock, and investors should be careful.”

“AI, and generative AI in particular, is pretty clearly going to have a massive impact on a large number of industries. The broader question is they’ve not had to face significant competition up until now, and it will be interesting to see how well the company does as competition and choices increase.”

“Up until now, if you weren’t buying an Nvidia chip, you weren’t buying a chip designed to support AI, and that’s changing rapidly.”

WASIF LATIF, PRESIDENT AND CHIEF INVESTMENT OFFICER, SARMAYA PARTNERS, PRINCETON, NEW JERSEY

“There’s been a lot of strong not only hedge fund buying but also broader retail buying in Nvidia. That’s likely to continue given the tools that are out there in very specific thematic funds and leveraged funds. This run might continue until we do see a slowdown in the pace of its earnings growth. The stock move is pretty well correlated to the growth of its earnings and history shows us that the high growth stocks tend to do really well as long as that earnings growth trajectory is in intact. The math tells us that the growth is not possible on a perpetual basis. At some point, you’d see the growth rate slow down and at that point you might see the market reflecting some of the slowdown in the earnings growth. Otherwise, it’s growing at a point and the market is factoring in that the stock would become the largest entity on the planet.”



Source link

Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

Recent posts

Related articles

5 arrested after detectives find young boy locked in cage inside house

Five people have been arrested after detectives found a young boy locked in a caged area inside...

Man accused of hitting unmarked police cruiser, causing hours-long standoff formally charged

A man accused of hitting an unmarked police cruiser and causing an hours-long standoff in Dayton has...

Scores of taxi drivers given licenses despite having convictions for violent offences

Scores of taxi drivers have been able to obtain licenses despite having convictions for violent offences, a...

US arrests Turk for allegedly trying to break Venezuela sanctions

WASHINGTON (Reuters) - U.S. authorities have arrested a Turkish man who they allege was trying to violate...

Rare November hurricane set to hit the US – here’s the projected path

A rare November hurricane is expected to make landfall in the southern US this weekend, according to...

Ominous Cloud Looms in Tornado-Warned Oklahoma County

An ominous-looking cloud was seen hovering in east-central Oklahoma on Monday, November 4, as weather officials issued...

US housing affordability, November's market seasonality: Wealth

In today's installment of Wealth, Brad Smith tackles the biggest personal finance topics ahead of Tuesday's presidential...

Dallas singer shot onstage while signing autographs after performance

A Dallas singer has been hospitalized after she was shot onstage following a performance Saturday with The...