Nvidia, a leading chip manufacturer based in Santa Clara, California, has surpassed Microsoft to become the world’s most valuable company. On Tuesday, Nvidia’s shares rose by 3.5 percent to $135.58, reaching a market capitalization of $3.335 trillion.
Recently, Nvidia overtook Apple to secure the position of the second most valuable company in the world. At the same time, Microsoft and Apple witnessed a decrease in their stock prices by 0.45 percent and 1.1 percent respectively. Nvidia’s success has also contributed to the record highs achieved by the S&P 500 and Nasdaq indexes.
Nvidia’s significant rally can be attributed to its integral role in the artificial intelligence sector. Its graphics processing units (GPUs) are essential for AI development and have attracted strong demand from tech giants like Microsoft, Meta, and Google. This growing demand has propelled Nvidia’s stock price to surge by nearly 182 percent this year and more than tripling in 2023.
Currently, Nvidia dominates about 80 percent of the market for AI chips used in data centers for running AI models such as OpenAI’s ChatGPT. Since its initial public offering in 1999, Nvidia’s shares have skyrocketed by 591,078 percent. Investors who put $10,000 into the company in 1999 would now hold stock worth $59,107,800 as per Kobeissi Letter newsletter on capital markets. Jensen Huang, CEO of NVIDIA shifted its focus towards developing GPUs for broader applications particularly in AI which has paid off making him one of the world’s richest individuals with an estimated net worth exceeding $117 billion as reported by Forbes.[/
