Editor: Meimei

AI is leading the US stock market on a wild ride.

In 2024, NVIDIA, with its outstanding performance in the field of artificial intelligence (AI), surpassed tech giant Microsoft in market capitalization, becoming the company with the highest market value in the world. This historic moment marks the central role of AI technology in the capital market and how it is reshaping the value evaluation of tech stocks.

Just a while ago, NVIDIA surpassed Apple to become the second-largest company globally. At that time, Wall Street had predicted: "NVIDIA will also surpass Microsoft, and this is most likely a foregone conclusion." Just 13 days later, this prediction became a reality!

NVIDIA's Market Cap Leap

NVIDIA's market capitalization growth trajectory is a direct reflection of its technical strength and market strategy. As of June 2024, NVIDIA's market capitalization reached a historic high of $3.335 trillion, with an annual share price increase of over 170%, making it a leader among tech stocks.

NVIDIA's AI strategic layout is the key to its market capitalization growth. As a global leader in AI chips, NVIDIA's GPUs account for over 70% of the global AI accelerator market. The explosive growth of the data center business, especially in areas such as cloud computing, big data analysis, and machine learning, has brought significant revenue growth to the company.

NVIDIA's collaboration with OpenAI has further promoted the commercialization of its AI technology. This strategic alliance not only strengthens NVIDIA's technical strength in the AI field but also significantly enhances market expectations for its future growth potential.

AI Technology - A Catalyst for Market Cap Growth

NVIDIA's case is not isolated. Other tech giants, such as Microsoft and Meta, have also demonstrated their ambitions and strategic vision in the AI field.

Microsoft, one of the largest software companies in the world, once had a market capitalization of over $3 trillion in 2023. This achievement was partially due to the deep integration of AI technology in Microsoft's Azure cloud service. Azure's cognitive services and machine learning capabilities provide customers with powerful AI solutions, driving rapid business growth.

The growth of Azure cloud services is partially attributed to its continuous innovation in AI services. By integrating AI technology, Microsoft provides customers with a series of advanced services ranging from speech recognition to image processing. The launch of these services has given Azure a favorable position in the cloud computing market.

Meta (formerly Facebook) has also demonstrated its ambitions in the AI field. The company announced its plans to research artificial general intelligence (AGI) and intends to purchase a large number of NVIDIA AI chips to support its research and development in AI. This move not only demonstrates Meta's high recognition of the commercial potential of AI technology but has also propelled its market capitalization to surpass the $1 trillion mark since 2021.

Meta's AI applications in the social media and virtual reality fields indicate its significant potential in personalized content recommendations, user experience enhancements, and more. By leveraging AI technology, Meta can better understand user needs and provide more personalized services, thereby enhancing user engagement and market competitiveness.

Future Prospects of AI Technology and Market Cap Growth

Based on current trends, the future development of AI technology not only预示着 the continuity of