Last week, NVIDIA saw a huge increase in its shares and became the world’s most valuable company. However, the share price decline on Friday caused the company to lose this seat. The company’s share decline of nearly 7 percent led to a loss of 220 billion dollars.

NVIDIA is no longer the most valuable company

NVIDIA shares have fallen over the past week. It lost its title as the world’s largest company by market capitalization. According to Bloomberg’s data, the hardware giant’s stock price fell by 6.7 percent. This led to a decrease in market capitalization by 220 billion dollars.

NVIDIA currently has a market capitalization of 3.1 trillion dollars. This makes it the third largest company after Microsoft and Apple. Microsoft’s value is around 3.31 trillion dollars, while Apple’s is around 3.18 trillion dollars.

The decline began when some investors decided to sell their shares after NVIDIA’s big rise last year. The company’s shares have soared more than 125 percent in the past year as demand for its graphics cards and artificial intelligence processors has soared.

Analysts believe that the short-term pullback will not cause problems for NVIDIA’s long-term prospects. Bank of America analysts believe it is in the middle of 3-5 years of growth due to demand from artificial intelligence customers.

Thanks to its next-generation Blackwell GPUs, the hardware giant has turned even its biggest rivals into customers. It was even reported that Microsoft and NVIDIA fought each other over these chips.