Fri Jan 03 03:49:56 UTC 2025: ## Nvidia Surges Past Microsoft as Second Most Valuable Company, Fueled by AI Boom

**Bengaluru, India (January 3, 2025)** – Nvidia experienced a phenomenal rise in market capitalization in 2024, becoming the second-most valuable publicly traded company globally, surpassing Microsoft. The chipmaker’s value soared by over $2 trillion, reaching $3.28 trillion by year’s end, driven by the explosive demand for its AI-centric chips. This growth contrasts sharply with its $1.2 trillion valuation at the end of 2023.

Apple maintained its lead as the world’s most valuable company, approaching a $4 trillion valuation, boosted by anticipation surrounding its upcoming AI-powered product enhancements. Microsoft held the third spot with a $3.1 trillion valuation, followed by Alphabet Inc. and Amazon, each valued at approximately $2.3 trillion.

The strong performance of these tech giants significantly propelled major market indexes, with the S&P 500 rising 23.3% and the Nasdaq climbing 28.6% in 2024.

Despite potential headwinds like US-China trade tensions and slower US interest rate cuts, analysts remain bullish on the tech sector’s prospects. Wedbush analyst Daniel Ives predicts a 25% increase in tech stock value in 2025, citing a less regulatory environment under a potential Donald Trump administration, forthcoming AI initiatives, and a strong foundation for major tech companies. Ives highlighted the “AI Revolution” and projected over $2 trillion in incremental AI capital expenditure over the next three years as key drivers of this growth.

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