Nvidia briefly claimed the top spot as the world’s most valuable company, surpassing Microsoft with a market cap of $3.34 trillion, only to lose $430 billion in value over three trading days. The tech giant’s rollercoaster ride showcases the volatility and concentrated value of the stock market, driven by investor interest in its pivotal AI technologies.
Nvidia briefly became the world’s most valuable company, overtaking Microsoft. The US chipmaker’s market capitalization hit $3.34 trillion on June 18, 2024, but quickly lost $430 billion over the next three trading days. By Tuesday, the stock had rebounded by nearly 7%, finishing with a market cap of $3.10 trillion, placing it behind Microsoft and Apple. This volatility is characteristic of rapid stock price increases and the concentrated value in a small group of tech firms. Nvidia’s chips are pivotal for AI technologies, including generative AI, driving significant investor interest. Nevertheless, the broader market shows signs of over-exuberance.
