AI Chip Maker Nvidia Takes Top Spot in Global Market Valuation
by Oliver Dale · BlockonomiTLDR
- Nvidia surpassed Apple with $3.43T market cap after 2.9% share increase
- Nvidia’s stock has grown over 850% since end of 2022
- AI cryptocurrencies including NEAR, ICP, and Bittensor showed strong gains
- Nvidia makes up 7% of S&P 500 Index’s weight
- Company faces regulatory review for planned $700M Run Labs acquisition
Nvidia has achieved a historic milestone by surpassing Apple as the world’s most valuable company, reaching a market capitalization of $3.43 trillion.
The achievement came after a 2.9% increase in the company’s share price on Tuesday, pushing it slightly ahead of Apple’s $3.38 trillion valuation.
The semiconductor giant’s rise to the top position reflects its dominance in artificial intelligence chip manufacturing, with its products becoming essential components for major tech companies’ AI systems.
Since the end of 2022, Nvidia’s stock value has increased by more than 850%, driven by strong demand for its AI chips.
Leading tech companies including Microsoft, Alphabet, Amazon, and Meta rely heavily on Nvidia’s chips to power their AI systems.
This dependence has contributed to Nvidia’s rapid growth trajectory, with Wall Street analysts projecting the company to more than double its earnings this fiscal year, followed by an additional 44% growth next year.
The company’s success has created ripple effects throughout the cryptocurrency market, particularly affecting AI-focused digital currencies. NEAR Protocol, a blockchain platform designed for AI applications, experienced a 5.46% increase, reaching $3.81 with a daily trading volume of $222 million.
Internet Computer, another blockchain project focused on AI capabilities, saw its value rise by 4.99%, trading at $7.37 with a $57 million trading volume.
These gains demonstrate growing investor interest in cryptocurrencies associated with artificial intelligence technology.
Bittensor, a decentralized AI platform, recorded even more substantial gains with a 14.65% increase, reaching $482.41. The impressive growth suggests strong market confidence in decentralized artificial intelligence solutions.
The Artificial Superintelligence Alliance token showed similar momentum, rising 10.96% to reach $1.25. Injective, a blockchain platform enabling decentralized AI applications, also participated in the rally with a 6.26% increase, trading at $17.34.
Fall Ainina, director of research at James Investment Research, noted that Nvidia’s position as the world’s largest company reflects investor expectations for continued growth in the AI market.
The company’s influence extends beyond its own stock price, as it now represents 7% of the S&P 500 Index’s weight.
Nvidia’s impact on the broader market has been substantial, contributing to approximately one-quarter of the S&P 500’s 21% gain this year. The company’s success has helped establish AI-related stocks among the top performers in 2024.
The surge in AI cryptocurrency values appears closely tied to Nvidia’s market performance. As more companies integrate AI into their operations, analysts expect both stock and crypto rallies driven by AI to continue their upward trajectory.
However, Nvidia’s expansion efforts face some regulatory challenges. The European Commission has initiated a review of the company’s planned $700 million acquisition of Israeli AI startup Run Labs Ltd, adding a note of caution to the company’s growth story.
The cryptocurrency market’s response to Nvidia’s success highlights the growing intersection between traditional technology companies and digital assets.
AI-focused cryptocurrencies have emerged as a new category of digital assets that attract investors interested in both blockchain technology and artificial intelligence.
Trading volumes for AI-related cryptocurrencies have increased alongside their prices, indicating broader market participation in this sector.
The NEAR Protocol’s daily trading volume of $222 million demonstrates active trader interest in AI-blockchain combinations.
These market movements suggest that investors are actively seeking exposure to artificial intelligence technology through various investment vehicles, including both traditional stocks and cryptocurrencies. The simultaneous rise in Nvidia’s stock price and AI cryptocurrency values indicates a market-wide recognition of AI’s growing importance.
Recent market data shows consistent trading patterns across AI-focused assets, with both traditional stocks and cryptocurrencies showing correlated price movements. This trend has been particularly evident in the days following Nvidia’s market cap milestone.