Nvidia, the once relatively unknown tech giant, has now surpassed Apple, Microsoft, and Google to become the most valuable public company in the world. Founded over 30 years ago, Nvidia started in the graphics processing unit (GPU) space, revolutionizing the gaming industry with lifelike visuals. However, it wasn’t until recently that Nvidia’s AI chip manufacturing capabilities brought the company to the forefront of the tech industry.
In 2012, Nvidia discovered that its chips could power artificial intelligence applications, leading to a surge in demand as companies across all sectors looked to incorporate AI into their operations. Nvidia’s market value now exceeds $3 trillion, making it more valuable than many countries’ entire economies. The company’s dominance in the AI chip market, controlling over 70% of it, has made it the best-performing stock on the S&P 500, with a 239% gain in 2023.
Despite the increasing competition from other tech giants like Meta, Amazon, IBM, and Microsoft, Nvidia’s capabilities in the AI space remain unrivaled. As the demand for AI continues to grow, so does the demand for Nvidia chips. While some may view this as a potential bubble in the tech industry, the intrinsic value of AI suggests that Nvidia’s position as a leader in AI chip manufacturing is here to stay.
The success of Nvidia can be attributed to its early investment in AI technology, positioning itself as the go-to provider for companies looking to integrate AI into their operations. As the tech industry continues to evolve, Nvidia’s dominance in AI chip manufacturing is likely to persist, solidifying its place as the most valuable public company in the world.
Article Source
https://amp.cnn.com/cnn/2024/06/20/investing/nvidia-most-valuable-company-explained