AI fever drives Nvidia’s rise to world’s most valuable company

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NEW YORK : Nvidia has become the world’s most valuable company following a staggering rally in its shares, underlining the outsized role investors expect artificial intelligence to play in the global economy over coming years.

FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Blockbuster earnings and broadening investor enthusiasm over AI are supercharging Nvidia's rally. That fervor has been reflected in Nvidia’s market value, which took only 96 days to go from $2 trillion to $3 trillion. Fortunes have diverged for past holders of the top position in recent decades. Microsoft reached No. 1 in the late 1990s but then its shares struggled for years during the early 2000s following the dotcom bubble, only to come roaring back in the latter half of the last decade.

Bespoke’s analysts recently contrasted the trajectories of Nvidia and Cisco, whose products were seen as essential in supporting the internet's infrastructure. Revenue for the current fiscal year is expected to roughly double to $120 billion, and then rise another 33 per cent in fiscal 2026, to $160 billion, according to LSEG data.

 

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