Nvidia, traditionally associated with graphics chips in the gaming industry, has now emerged as the most valuable public company globally.
The chipmaker’s stocks rose by 3.6% on Tuesday, propelling its market capitalization to $3.34 trillion, surpassing Microsoft, currently valued at $3.32 trillion. In a recent milestone earlier this month, Nvidia surpassed Apple to reach the $3 trillion market cap mark.
Amidst a remarkable year where Nvidia’s shares have surged by over 170%, the company’s momentum received a significant boost following the positive first-quarter earnings report in May. Since the end of 2022, the stock has surged more than ninefold, a growth period aligned with the advancement of generative artificial intelligence technology.
Nvidia presently dominates the AI chip market segment, particularly in data centers, holding a market share of around 80%. The demand for AI chips has soared, driven by tech giants like OpenAI, Microsoft, Alphabet, Amazon, Meta, and others rushing to secure processors essential for constructing AI models and managing extensive workloads.
In the latest financial quarter, Nvidia recorded a substantial 427% increase in revenue from its data center unit compared to the previous year, amounting to $22.6 billion and contributing to approximately 86% of the company’s total sales.
Over the past two years, Nvidia’s shares have witnessed a meteoric rise as the US markets recognized the company’s technological prowess as a catalyst for the explosive growth in AI with no signs of abating. This surge has propelled the net worth of co-founder and CEO Jensen Huang to approximately $117 billion, positioning him as the 11th wealthiest individual globally, as per Forbes.
