NVIDIA loses top spot to Microsoft as shares fall 3%
NVIDIA experienced a significant 3.4% drop in shares on Thursday, resulting in a loss of approximately $91 billion from its market value. This decline led to Microsoft reclaiming its position as the world's most valuable company. The market value of NVIDIA decreased to $3.30 trillion at a share price of $131.88, while Microsoft's slipped to $3.31 trillion as its shares fell by 0.4% to $444.8 during afternoon trading.
Apple, NVIDIA, and Microsoft vie for top spot
The competition for the title of the world's most valuable company is not exclusive to NVIDIA and Microsoft. Apple is also a strong contender with a market capitalization of $3.22 trillion, despite its shares experiencing a 2.2% drop to $210.10. This dynamic landscape underscores the ongoing battle among tech giants for market dominance.
Musk's xAI startup impacts server manufacturers' shares
Elon Musk's recent announcement on his X social media platform, about Dell and Super Micro providing server racks for his xAI startup's supercomputer, has influenced the stock market. These companies manufacture servers equipped with NVIDIA chips, which power virtually all AI applications. On Thursday, both Dell and Super Micro saw their shares fall by 1% and 0.7%, respectively.
NVIDIA's profitability in AI highlighted amid market shifts
Jake Dollarhide, CEO of Longbow Asset Management, emphasized NVIDIA's profitability in the AI sector stating, "While Microsoft both spends and makes money in AI, NVIDIA only makes money and lots of money and profits in AI. That's why you cannot spell NVIDIA without AI." Despite the recent decline, NVIDIA's stock price has nearly tripled this year. Super Micro's shares have also more than tripled in value during the same period, while Dell's stock has risen by nearly 95%.
