Nvidia has officially dethroned Microsoft as the world’s most valuable company, reaching a market capitalization of $3.335 trillion. This achievement comes on the heels of surpassing Apple to claim the second spot just days prior. The chipmaker’s shares have seen a 3.5% increase, with a share price of $135.58.
The surge in Nvidia’s stock price is attributed to the strong demand for its graphic processing units (GPUs) which are crucial for artificial intelligence development. Tech giants like Microsoft, Meta, and Google are among the companies driving this demand. As a result, Nvidia’s stock price has seen a dramatic increase of almost 182% this year alone, following a tripling in 2023. Nvidia’s dominance in the AI chip market, holding around 80% market share in data centers for AI models like OpenAI’s ChatGPT, has solidified its position as a leader in the industry. Since its IPO in 1999, the company’s shares have skyrocketed by an astounding 591,078%.
CEO Jensen Huang’s strategic decision to shift focus from gaming chips to GPUs for AI applications has proven to be a wise move, positioning the company as a key player in the artificial intelligence space. Huang’s net worth now exceeds $117 billion, making him one of the world’s richest individuals according to Forbes.
Investors who had the foresight to invest $10,000 in Nvidia back in 1999 would now be holding shares worth an astonishing $59,107,800. This remarkable growth trajectory showcases Nvidia’s evolution from a gaming chip producer to a powerhouse in the artificial intelligence industry. As Nvidia continues its upward trajectory, it is evident that the company’s innovative technology and strategic vision have propelled it to the forefront of the global market, surpassing even tech giants like Microsoft and Apple. The future looks bright for Nvidia as it continues to lead the way in driving advancements in artificial intelligence.