Nvidia overtakes Microsoft to become world's most valuable public company

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A so-called stock split has been credited with driving the chipmaker's value further into the stratosphere, 12 days after it claimed the number two spot from Apple.

Microsoft has been dramatically toppled as the world's most valuable public company. Nvidia, which had only overtaken Apple for the number two spot earlier this month, dethroned Microsoft during trading on Tuesday as its shares rose by more than 3%. The stock has risen more than 170% this year given the chipmaker's leading position in the artificial intelligence race with 80% of the processor market.

Analysts said demand for Nvidia's shares was boosted earlier this month by a stock split that created more shares and made them more attractive to individual investors. They had cost more than $1,000 each before the split on 7 June. Microsoft's shares have risen just 19% in comparison during the year to date - a surge which would usually be seen as satisfactory but for Nvidia's enviable performance.

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