Nvidia most valuable company: Chipmaker leaps over Microsoft for top spot the rise has been stunning

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It’s no surprise Nvidia has become the world’s most valuable company, but it’s 43 per cent surge in just a month suggests emotion is driving the stock – and the broader market.

topping one of its key customers Microsoft with a market capitalisation of $US3.34 trillion , is not necessarily a great surprise.Nvidia chief executive Jensen Huang keeps delighting the market.The momentum behind this stock, and the broader AI story, is undeniable.

And the fund managers’ pick for the most crowded trade in the world? Of course it’s long on magnificent seven tech stocks – Nvidia, Microsoft, Apple, Tesla, Amazon, Alphabet and Meta Platforms. And fair enough too, given any fund manager who doesn’t own Nvidia, or is underweight the stock, will have a very difficult time beating their benchmark.

“There is often fundamental support for a speculative mania. That reinforces the trend and the misconception of reality. It also encourages speculators to buy an asset on the hope that it will be worth more in the future. US equities and the technology sector have superior profits relative to other markets and sectors. However, the non-linear price action and the increasing divergence between price, beliefs, and fundamentals suggests a distorted view of reality.

, which soared during the tech bubble as hardware sales ripped higher, only to plunge when the bubble burst.

 

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Nvidia becomes world's most valuable company, toppling Microsoft amid pursuit of AI dominationTechnology multinational Nvidia has become the world's most valuable company, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate artificial intelligence computing.
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