Nvidia Corp. has achieved a significant milestone by overtaking Saudi Aramco in market value, solidifying its position as the world’s third-most valuable public company, trailing only Apple Inc. and Microsoft Corp. The chipmaker closed Friday’s session with a market capitalization of $2.06 trillion, marking its first-ever close above the $2 trillion threshold. In contrast, Aramco’s value dipped to $2.03 trillion, according to Bloomberg data.
Nvidia’s remarkable ascent can be attributed to its stellar performance in the stock market, driven by robust earnings that have reinforced Wall Street’s confidence in the transformative potential of artificial intelligence (AI) technology. The company’s dominance in the market for graphics chips tailored for complex computing tasks required to power AI applications has fueled its meteoric rise.
The bullish rally surrounding Nvidia has been relentless, with the stock surging approximately 66% since the beginning of the year, adding a staggering $834 billion in market value. In premarket trading on Monday, Nvidia shares rose by as much as 1.8%, further underlining investor optimism and momentum.
In contrast, Saudi Aramco has faced headwinds, experiencing a decline of over 5% in market value this year. Factors contributing to this downturn include reduced production resulting from OPEC+ cuts and the potential impact of a follow-on offering by the Saudi government, which has weighed on investor sentiment.
Nvidia’s ascendancy to the third-most valuable public company reflects the growing significance of technology and AI-driven solutions in shaping the future of industries worldwide. As companies increasingly prioritize innovation and digital transformation, Nvidia stands at the forefront, driving advancements in AI technology that are reshaping the technological landscape.
The company’s market value milestone underscores its position as a key player in the global tech ecosystem, with its innovative products and solutions driving growth and creating value for shareholders. As Nvidia continues to push the boundaries of AI and computing capabilities, its leadership in the market is poised to propel it to even greater heights in the future.
