Nvidia becomes world’s most valuable company following AI rally

Ben Laidler, Global Markets Strategist at eToro, said: “NVIDIA is now the largest company by market capitalization in the S&P 500 index and the world. This achievement is propelled by an unprecedented fundamental-driven rally as AI has transitioned from hype to reality. NVIDIA’s sales surged 260% last quarter compared to a year ago, and its profits have risen tenfold since the rally began in earnest at the end of 2022. The company’s first-mover advantage in GPU chips has provided strong drivers for both volume and pricing power.

“Global retail investors have played their part, with the stock currently the fourth most owned on the eToro platform, with the number of holders surging 41% in the past three months, the most of any large stock.

“The S&P 500 has only seen 12 companies hold the title of the largest market cap in the past century. Companies like General Electric, General Motors, Cisco, Philip Morris, DuPont, and AT&T serve as cautionary reminders that success is not eternal. Many of the best firms fade over time as competition catches up or they are disrupted by the next big technology.”