Nvidia value rises by £232bn in a month – but bad news for Tesla
Nvidia’s market value surged by £232.6bn in January – the biggest monthly increase in history.
The world’s largest chipmaker has become a darling of the stock market because its processors are widely used for artificial intelligence.
Nvidia’s stock has risen by 31% since the year began, and 190% over the past 12 months – breaching all-time highs on a regular basis.
How AI is being used in the workplace
Last month’s unprecedented surge leaves Nvidia with a market cap of £1.22trn as investor enthusiasm surrounding AI shows no sign of diminishing.
It’s now the sixth most valuable company on the planet – comfortably ahead of Facebook owner Meta, and creeping up on Amazon.
Microsoft – which has now overtaken Apple as the company with the biggest market cap – also saw its valuation appreciate by £125bn in January.
The company surpassed expectations on revenue and earnings per share when it released its latest results earlier this week – buoyed by strong demand for its cloud services.
Read more business news:
Shares in Meta surge on dividend announcement
Why iPhone sales have slumped in China
Guinness owner Diageo hunts for new chairman
Will AI mean ‘no job is needed’?
Other businesses saw sharp retracements in their valuations.
Tesla’s market cap shrank by £151.6bn – 24% – after Elon Musk warned growth in 2024 will be “notably lower” than previous years.
This is against a backdrop of aggressive price cutting that has eaten into the electric vehicle manufacturer’s profit margins.
Saudi Arabian Oil Co has also shed 7.3% of its valuation, the equivalent of £121.5bn.