AI companies, focused on developing artificial intelligence-related products, have seen huge gains in market capitalization by the end of June. Chipmakers, in particular, have benefited from the AI-centric market. One of those chipmakers is Nvidia, which briefly overtook Microsoft to become the most valuable company in the world.
In June, Nvidia's shares rose by 27%, increasing the company's market capitalization to $3.34 trillion. However, this gain was short-lived due to concerns about its high valuation and profit booking.
Data from LSEG, as reported by Reuters, showed Nvidia as the top global company by market capitalization, followed by Apple, with Microsoft in third. Amazon and Broadcom came in fourth and fifth, respectively.
Microsoft's market capitalization increased by 7.6%, and Apple's by 9.6% over the past month. Amazon reached $2 trillion, securing the fourth spot thanks to AI enthusiasm. Broadcom saw a 20% jump in capitalization after raising its forecast for AI-related chips by ten percent and announcing a stock split, capitalizing on the rally in its shares.
By the end of June, data from LSEG showed Microsoft retaking the top spot in terms of market capitalization, followed by Apple, with Nvidia in third. Alphabet Inc. came in fourth, and Amazon in fifth.
Among the top key players, Nvidia had a very strong performance in June, competing closely with tech giants.
According to a previous report, Nvidia's rise can be attributed to the market's interest in artificial intelligence. The company's chips play a pivotal role in training and running advanced AI models like OpenAI's ChatGPT.
The Financial Times previously reported that Nvidia transformed from a $300 billion entity into a major force in the tech industry. Nvidia's products are in high demand from other giants in Silicon Valley.
Jensen Huang, the CEO of Nvidia, described this period as a new "industrial revolution," where generative AI is poised to revolutionize the global economy through intelligent computing. Nvidia's cutting-edge technology has been adopted by major players like Google, Microsoft, and Amazon, who have incorporated Nvidia's "Hopper" series of graphic processing units into their cloud services.
