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

Here's What the Latest Science Tells Us About Ivermectin

EARLY IN THE Covid pandemic, some medicines got reputations for potentially being able to treat the virus,...

Deadly bomb cyclone hits Pacific Northwest, bringing high winds and devastating damage

At least two people have died after a bomb cyclone slammed into the Pacific Northwest, snapping tree...

Weekend storm dishes another brutal blast of winter to the Prairies

There's no easing into winter across the Prairies this week, as back-to-back storm systems bring plunging temperatures,...

Winter Weather Advisory issued for parts of area; Latest track, timing, impacts for snow

Snow showers are likely on Thursday for the snowflakes of the season.The National Weather Service has issued...

Russia says new US base in Poland raises overall nuclear danger

MOSCOW/WARSAW (Reuters) -Russia said on Thursday that a new U.S. ballistic missile defence base in northern Poland...

North Carolina GOP lawmakers vote to strip incoming Democratic leaders' powers

North Carolina Republican lawmakers voted to strip the state’s incoming Democratic governor and attorney general of key...

Twin Cities roads 'glare ice,' local sheriff advises limited travel

Snow coupled with temps dipping below freezing has led to very slippery road conditions in Minnesota, namely...

Missing Hawaii woman’s family alarmed over new info: ‘She’s not alone’

HONOLULU (KHON2) — It has been nine days since Hannah Kobayashi’s cell phone was last located at...