AI-focused tech firms see big jump in market cap in June

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July 1, 2024 – 3:26 AM PDT

A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) – Artificial intelligence-focused companies, mostly chipmakers, saw big gains in their market capitalization at the end of June, with Nvidia (NVDA.O) briefly overtaking Microsoft to become the most valuable company in the world.

Nvidia shares rose as much as 27% in June, boosting its market capitalization to $3.34 trillion, before giving up some of their gains later in the month, due to profit booking and concerns over its high valuations.

Microsoft’s market capitalization increased by 7.6%, while that of Apple Inc (AAPL.O) surged 9.6% over the past month.

Meanwhile, Amazon.com Inc (AMZN.O) hit $2 trillion in market value last month, becoming the fifth U.S. company to achieve the milestone, riding on AI-influenced enthusiasm.

Broadcom Inc’s market capitalization jumped about 20% last month after it increased its annual revenue forecast for AI-related chips by 10% and announced a stock split to capitalize on this year’s rally in its shares.

^{Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Anil D’Silva}