Nvidia Surges to become the World’s Most Valuable Company on Chip Manufacturing for AI Technology

Nvidia, the GPU manufacturer, has recently surpassed Microsoft to become the world’s most valuable company based on the chips it produces that are crucial for driving the growth of generative AI technology. At the close of trading on Tuesday, Nvidia’s share price reached $135.58, an increase of $4.60 from the previous day, pushing its market cap to $3.335 trillion. This places Nvidia ahead of tech giants like Microsoft ($3.32 trillion), Apple ($3.29 trillion), and Google ($2.17 trillion).

The company’s shares underwent a 10-for-1 split after June 7th, which lowered the overall share price, but the rapid increase in the company’s value has been remarkable. In 2024 alone, Nvidia’s share price has surged by 160 percent, and the company only exceeded the $2 trillion mark in February. During its last earnings report in May, Nvidia reported over $26 billion in revenue, anticipating the introduction of the new Blackwell GPU architecture later in the year, which includes the B200, hailed as “the world’s most powerful chip.”

Nvidia CEO Jensen Huang has indicated that Blackwell units will be priced between “$30,000 to $40,000” each, with plans to release new AI chips annually. This aggressive approach to innovation and strong demand for Nvidia’s products have propelled it to be at the forefront of technology industry and solidifying its position as a leader in chip manufacturing for generative AI technology.