Nvidia Corporation, renowned for its AI chips, has surpassed tech giants Microsoft and Apple to become the world’s most valuable public company.
Closing at $135.58 per share, Nvidia’s market valuation surged to approximately $3.35 trillion, propelled by a 3.5 per cent rise in stock prices. This remarkable rally has seen Nvidia dethrone Microsoft as investors place their bets on the chip-maker’s pivotal role in the AI market.
Over the past few weeks, Nvidia has been vying with Microsoft and Apple for the highest valuation amid a tech stock boom. Earlier this month, Nvidia surpassed Apple to secure the second-most valuable spot before Apple briefly reclaimed it following the release of its AI strategy and a notable partnership to integrate OpenAI’s ChatGPT technology into Apple devices.
Founded in 1993 by Jensen Huang and his co-founders, Nvidia is headquartered in Santa Clara, California, and employs around 30,000 people. The company’s stock has skyrocketed by almost 182 per cent this year alone, compared to a 20 per cent increase in Microsoft shares. Over the past year, Nvidia’s stock has soared by nearly 210 per cent.
The company’s robust growth is fuelled by the rising demand for its data centre chips and graphics processing units, which are essential for AI development. Nvidia’s silicon chips dominate the global AI chip market, with major customers including Microsoft, Meta Platforms, and Amazon.
In its latest quarter, Nvidia reported $26 billion in sales, marking a 262 per cent increase year-on-year. The company’s operating income reached $16.9 billion, a staggering 690 per cent rise from the previous year.
Nvidia’s influence extends beyond its stock performance. On June 7, the company executed a ten-for-one stock split, enhancing its appeal among individual investors. This strategic move has further solidified its market position.
Analysts predict an intense competition for a $4 trillion market cap among Nvidia, Apple, and Microsoft. Dan Ives of Wedbush Securities highlighted Nvidia’s crucial role in the tech sector, stating, “Nvidia’s GPU chips are essentially the new gold or oil in the tech sector.”
Nvidia’s ascendancy has positively impacted Wall Street, with both the S&P 500 and Nasdaq closing at new record highs. As Nvidia continues to capitalise on the AI boom, its dominance in the market seems set to continue, reshaping the landscape of the tech industry.
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Nvidia Overtakes Microsoft and Apple to Become World’s Most Valuable Company
