In January, NVIDIA Corp achieved a historic milestone as it recorded a remarkable surge in market value, setting a new monthly record. The chipmaker’s market cap saw an extraordinary increase of $296.52 billion, reaching approximately $1.52 trillion.
This surge surpassed its monthly high of $248.23 billion, recorded in May 2023.
Tech Market Values Soar in January
The surge in Nvidia’s stock was fueled by heightened optimism surrounding artificial intelligence (AI), favorable analyst predictions, and the company’s announcement of expanded AI offerings.
Introducing new desktop graphics processors and AI-related components and software advancements further contributed to the stock’s growth.
In a similar trend, Microsoft, the world’s most valuable company, experienced a substantial rise in market value, adding $159.36 billion. This increase was primarily attributed to the growing demand for its Azure cloud service.
The company reported higher-than-estimated quarterly profit and revenue, although investor caution surfaced due to concerns about rising costs.
As of Wednesday, 31 January, Microsoft’s market value exceeded $2.95 trillion, surpassing Apple Inc’s $2.85 trillion market capitalization. Meta Platforms also saw more growth in its market value, crossing the $1 trillion mark for the first time since September 2021.
The surge in Meta’s stock, driven by a 14% increase to a record high of $451, resulted in a market capitalization increase from $148 billion to $1.16 trillion.
This followed Meta’s announcement of a 25% jump in revenue to $40.1 billion for the December quarter and the declaration of its inaugural dividend.
Furthermore, Tesla Inc. emerged as the weakest performer among the top 20 global companies by market cap, witnessing a decline of approximately 24.5% in its value over the last month.
Concerns over slowing growth led CEO Elon Musk to caution that sales growth would be “notably lower” this year despite recent price reductions.
Additionally, Saudi Arabian Oil Co experienced a 7.3% fall in its market value during the same period.
Nvidia’s Recent Market Performance
Besides the growth in market value, Nvidia has maintained a good streak of achievements in recent months. A notable example is the recognition at the NVIDIA Partner Awards EMEA 2024.
The company’s market performance is also seen in its stock growth as of last year, with prices surging by over 238%.
Moreover, Nvidia has been pivotal in pushing technological progress within the retail sector. This is exemplified by their yearly State of AI in Retail and CPG survey, which sheds light on new trends and showcases how AI can boost operational effectiveness and foster expansion.
Nvidia also positions itself as a critical player in the tech industry through its gaming and artificial intelligence offerings. The company is known for its graphics processing units (GPUs), which are essential to gaming and AI applications.
The importance of these GPUs is also seen in workflows, as they enable data-driven decision-making and aid cost reduction in various industries, including gaming, AI, and autonomous vehicles.