Company hits $2.06tn, surpassing Aramco, fueled by AI-driven market dominance
Nvidia Corp. has achieved a significant milestone by surpassing Saudi Aramco in market value, positioning the chipmaker as the third-most valuable public company globally, trailing only behind Apple Inc. and Microsoft Corp.
The company's market valuation soared to US$2.06tn at the close of Friday's session, marking its first closure above the $2tn threshold. In contrast, Saudi Aramco's valuation dipped to $2.03tn, as reported by Bloomberg data.
The surge in Nvidia's shares is largely attributed to the company's exceptional earnings performance, which has fueled Wall Street's optimism about the transformative potential of artificial intelligence (AI) in the tech industry.
Nvidia holds a commanding presence in the graphics chip market, essential for the sophisticated computing tasks that underpin AI applications currently in high demand.
This year, Nvidia's stock has experienced a remarkable rally, ascended approximately 66 percent, and accrued an added value of about $834bn. The stock witnessed a further increase of up to 1.8 percent in premarket trading on Monday.
On the other hand, Saudi Aramco has faced challenges this year, with its stock value declining by more than five percent.
Factors contributing to this downturn include reduced production due to OPEC+ cuts and the potential impact of a follow-on offering by the Saudi government on the company's shares.
