Nvidia Leaps Aramco To Be World’s Third Most-Valuable Company

The Nvidia headquarters in Santa Clara, California, US, on Friday, May 26, 2023. Nvidia Corp. is within touching distance of $1 trillion market value, poised to become only the ninth firm ever to hit that milestone, as the artificial intelligence frenzy boosts demand for processors that can accelerate computing. Photographer: Philip Pacheco/Bloomberg

(Bloomberg) -- Nvidia Corp. has claimed another milestone by overtaking Saudi Aramco in market value, making the chipmaker the world's third-most valuable public company after Apple Inc. and Microsoft Corp.

The company rises 2.5% on Monday reaching $2.11 trillion, after closing above the $2 trillion mark for the first time on Friday. Meanwhile, Aramco's value dipped to $2.01 trillion, according to data compiled by Bloomberg.

Nvidia shares have skyrocketed on the back of blowout earnings that reaffirmed Wall Street's optimism on the potential for artificial intelligence to reshape the technology industry. The company dominates the market for graphics chips designed for complex computing tasks needed to power AI applications that companies are rushing to develop.

The rally has been relentless this year. The stock has climbed about 70% and added some $883 billion in value.

Meanwhile, Aramco has dropped over 5% this year, with lower production as a result of OPEC+ cuts and a potential follow-on offering by the Saudi government weighing on the shares.

--With assistance from Farah Elbahrawy and Rheaa Rao.

(Updates stock moves in paragraph two and four.)

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