- Nvidia, up more than nine-fold since the end of 2022, has surpassed Microsoft to become the most valuable public company.
- The chipmaker passed the $3 trillion market cap mark in early June, joining Microsoft and Apple in that club.
- Nvidia has been the primary beneficiary of the recent boom in generative artificial intelligence.
Nvidia has become the most valuable public company globally, with its market cap reaching $3.33 trillion on Tuesday, surpassing Microsoft and Apple. Shares of the chipmaker have soared over 170% this year, driven by the rising demand for AI chips.
Nvidia, which dominates about 80% of the AI chip market, reported a 427% increase in data centre revenue for the latest quarter, totalling $22.6 billion. This surge is attributed to significant investments from tech giants like OpenAI, Microsoft, Alphabet, Amazon, and Meta.
Founded in 1991, Nvidia initially focused on graphics chips for gaming but has since evolved, becoming a key player in AI technology. CEO Jensen Huang’s net worth has also risen to approximately $117 billion.
Microsoft’s shares are up 20% this year, boosted by its stake in OpenAI and integration of AI models into its products. Nvidia’s rapid growth, however, has yet to secure it a spot in the Dow Jones Industrial Average, though a recent 10-for-1 stock split increases its chances.
Despite the stock market volatility, Nvidia’s ascent reflects its critical role in the AI revolution, setting it apart as a leader in the tech industry.
