Nvidia, the chip giant, is on track to reach a market value of about $3 trillion, becoming the world's largest company and displacing Apple and Microsoft from the top spot, after being worth only 2% of the iPhone maker's value a decade ago.
Nvidia's market value reached $2.82 trillion after its shares rose 0.81% to $1,148.25 at the close of trading yesterday, Wednesday, which is only 3% less than Apple's valuation of $2.9 trillion, and 11% less than Microsoft's valuation of $3.2 trillion, according to Forbes magazine.
Nvidia's record-breaking rise in value is a record turnaround from the end of 2014, when the company's market value was just $11 billion, compared to Apple's $643 billion and Microsoft's $382 billion.
Nvidia was able to outperform Alphabet, the owner of Google, and Amazon during the current year 2024, after the share price jumped by 130%.
To beat Apple's valuation, the stock would need to rise by $35, and $140 to surpass Microsoft.
Nvidia's stock price has risen by $70 in two of the past four trading days.
Forbes reports that there are widespread expectations that Nvidia could surpass $3 trillion in value, and if FactSet's estimate of the stock rising above $1,220 is met, the chipmaker will become only the third company ever to surpass that level in market value.
This week, Nvidia CEO Jensen Huang became one of only 16 people in the world with a net worth of more than $100 billion, according to Forbes' calculations.
This is a remarkable increase for Huang, whose wealth is mostly tied to his 3.7% stake in Nvidia, considering that his fortune was only $1.7 billion according to Forbes' 2016 ranking of the 400 richest Americans.
