Nvidia, a chip designer and artificial intelligence powerhouse, has overtaken Microsoft as the world’s most valuable public company for the second time in less than two weeks. The company’s market capitalization reached $3.33 trillion, surpassing Microsoft’s $3.32 trillion. Nvidia’s stock performance has been strong, with shares rising over 3% to about $135.65. This increase comes after a recent 12% surge following a stock split that lowered prices from $1,210 to around $120 per share.
The year began with Nvidia’s market value at $1.2 trillion, far behind Microsoft and Apple. However, Nvidia’s market cap has soared by 177% since then, reflecting its growing importance in the tech industry. Nvidia’s CEO, Jensen Huang, now ranks as the 11th richest person globally, with an estimated net worth of $118.8 billion.
Nvidia’s success is fueled by its role in the artificial intelligence craze, making its chips and graphics processing units highly sought after by tech giants like Microsoft, Meta, Amazon, and Alphabet. Microsoft reportedly contributes 15% of Nvidia’s revenue, and the company controls an estimated 70% to 95% of the AI chip market. With $8.4 billion in net income reported for its fiscal 2023, Nvidia’s growth shows no signs of slowing down. Analysts project that Nvidia’s net income will surpass that of Apple within the next four years.
This latest achievement for Nvidia highlights the company’s dominance in the tech industry, driven by its innovative products and strong financial performance. As the demand for AI technology continues to increase, Nvidia is well-positioned to capitalize on this trend and further solidify its market leadership.
In summary, Nvidia’s recent surge in market value reflects its growing influence in the tech industry, driven by its pivotal role in the artificial intelligence sector. With strong financial performance and a robust product portfolio, Nvidia is poised to continue its upward trajectory and further establish itself as a key player in the global tech landscape.
Article Source
https://www.forbes.com/sites/antoniopequenoiv/2024/06/18/nvidia-now-worlds-most-valuable-company-topping-microsoft-and-apple/