- Nvidia shares are up 27% in June, Microsoft’s market value is up 7.6%, and Apple’s market value has surged 9.6% in the past month.
- For technology firms, seizing the opportunities of AI technology and constantly innovating and adapting to market demand is important.
OUR TAKE
With the popularisation and application of AI technology, the demand for high-performance computing chips will continue to grow, providing a broad market space for chip manufacturers. Microsoft, Apple and other technology giants will continue to make efforts in the second half of the year to strengthen the strategic layout and innovation capabilities in AI.
–Zora Lin, BTW reporter
What happened
A number of AI-focused companies, primarily chipmakers, see their market capitalisation surge in June, with Nvidia (NASDAQ :NVDA) briefly overtaking Microsoft (NASDAQ :MSFT) to become the world’s most valuable company.
Nvidia shares rose 27% in June, but give up some of those gains later that month amid profit booking and concerns about its high valuation. Microsoft’s market cap is up 7.6%, while Apple’s (NASDAQ :AAPL) market cap has surged 9.6% over the past month.
Meanwhile, Amazon.com Inc. (NASDAQ :AMZN) hit a $2 trillion market cap last month, becoming the fifth U.S. company to achieve that milestone thanks to the impact of artificial intelligence.
Broadcom Inc. (NASDAQ :AVGO) last month raises its annual revenue forecast for AI-related chips by 10 percent and announces a stock split to take advantage of this year’s stock rally, after which the company’s market value jumps about 20 percent.
Also read: How Nvidia dominates the AI chip market
Also read: NVIDIA dethrones Microsoft as the world’s leading tech giant
Why it’s important
The sharp increase in the market value of AI-focused companies such as Nvidia highlights the rapid development of AI technology and the market’s recognition of its prospects, indicating that AI has become an important engine driving the growth of the technology industry, and the capital market shows enthusiasm and investment interest in the AI industry.
Amazon has become the fifth US company to reach a market cap of $2 trillion, further evidence of how artificial intelligence is reshaping business models and the competitive landscape of the market. By leveraging AI technology, companies such as Amazon have achieved significant results in improving operational efficiency, optimizing user experience, and expanding into new markets.
This series of events also reflects the important role of technological innovation and market competition in promoting the development of the technology industry. Only by constantly innovating and adapting to market demand can we stand out in the fierce market competition.
