Nvidia is the most valuable company of all time
Following the presidential elections in the USA, there have been some shifts on the stock markets. Technology companies in particular are benefiting from investors’ hopes of tax cuts. This has led to a general rise in share prices and a new record: on Thursday, Nvidia became the first company ever to reach a market capitalization of over USD 3.6 trillion.
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On that day, the closing price was 3.65 trillion (trillions), since then and over the weekend it has fallen slightly, and on Sunday Nvidia now has a market value of 3.62 trillion. However, this is still a solid gap to Apple, which is valued at 3.43 trillion. The top ten most valuable companies by share price have long been dominated by tech companies: After Apple come Microsoft, Alphabet (Google) and Amazon.
Twice as valuable as Saudi Aramco
The energy company Saudi Aramco is the first non-tech company in sixth place. This is valued at 1.80 trillion dollars, meaning that Nvidia is worth twice as much as the world’s largest oil production company. The seventh most valuable company is Meta Platforms (Facebook), followed by chip manufacturer TSMC and Tesla. This is also the last company with a value in the trillions, with the US holding company Berkshire Hathaway, which does most of its business in reinsurance, currently in tenth place with just under one trillion.
The large gap between Nvidia and these companies repeatedly raises concerns about the bursting of a supposed AI bubble. This is because Nvidia has been earning the majority of its revenue for years from GPUs that are specially optimized for artificial intelligence. However, analysts tend to believe that although the AI hype is flattening out, it is far from over.
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