Nvidia Becomes the World's Most Valuable Company, Market Cap Reaches $3.34 Trillion, Leaving Microsoft and Apple Behind |

 

Nvidia, an AI-based chip design and manufacturing company, has surprisingly emerged as the world's most valuable company. Just six months ago, no one could have imagined that Nvidia would surpass the likes of Microsoft and Apple to claim this prestigious title. On June 18th, Nvidia's market capitalization reached a staggering $3.34 trillion, a testament to the company's remarkable growth and performance.

From January to the present, Nvidia's share price has skyrocketed by an impressive 181%. On January 2nd, 2024, the stock was trading at $48, and by June 18th, it had soared to $135.58. This means that anyone who invested in Nvidia at the beginning of the year has seen their investment more than double in value.

Achieving such a dominant market position is no easy feat, especially for a company of Nvidia's size. This remarkable accomplishment underscores the strength of Nvidia's business model, the quality of its products, and the confidence investors have in the company's future prospects.

Nvidia Leaves Everyone in the Dust in the Market Cap Race

Nvidia Surpasses Facebook's Parent Meta, Amazon, and Alphabet to Leave Apple and Microsoft Behind

Nvidia, the company that has been making waves in the tech world, has recently surpassed Meta, Amazon, and Alphabet to claim the top spot in the market capitalization race. This is a remarkable feat, especially considering that no one could have predicted that Nvidia would leave Apple and Microsoft behind. On June 18th, Nvidia's market capitalization reached a staggering $3.34 trillion, marking a significant milestone in the company's history.In just a month, Nvidia's shares have surged by nearly 45%. This meteoric rise has cemented Nvidia's position as the most valuable public company globally, with its founder, Jensen Huang, now the 11th richest person in the world with an estimated net worth of $117 billion.Nvidia's success can be attributed to its pivotal role in the burgeoning field of generative artificial intelligence (AI). The company's data center business revenue for the most recent quarter soared by 427% year-over-year to $22.6 billion, accounting for approximately 86% of the company's total sales. This business sector has experienced exponential growth as tech giants like OpenAI, Microsoft, Alphabet, Amazon, Meta, and others race to acquire the processors necessary to build AI models and manage increasingly large workloads.Nvidia's shares have experienced remarkable growth this year, with a 170% increase, and a further leg up following the company's first-quarter earnings report in May. Founded in 1991, Nvidia spent its initial decades as a hardware company, selling chips for gamers to run 3D titles. The company also ventured into cryptocurrency mining chips and cloud gaming subscriptions.However, over the past two years, Nvidia's shares have skyrocketed, with Wall Street recognizing the company's technology as the driving force behind the AI revolution that shows no signs of abating. This surge in value has significantly boosted co-founder and CEO Jensen Huang's net worth, currently estimated at around $117 billion, making him the 11th wealthiest person in the world.Microsoft, too, has been a significant beneficiary of the AI boom, having taken a substantial stake in OpenAI and integrating its AI models into key products like Office and Windows. Microsoft is among the largest buyers of Nvidia's graphics processing units (GPUs) for its Azure cloud service. The company recently released a new generation of laptops designed to run its AI models, called Copilot+.Nvidia's ascent to the most valuable U.S. company has been so rapid that it has yet to be added to the Dow Jones Industrial Average, the stock benchmark comprising 30 of the most valuable U.S. companies. Following its earnings release last month, Nvidia announced a 10-for-1 stock split, effective June 7, which may improve its chances of being added to the Dow, as it is a price-weighted index.

Nvidia's Founders and Work

Nvidia's Founder Jensen Huang: The Man Behind the AI Revolution

Nvidia's founder, Jensen Huang, is the driving force behind the company's success. He founded Nvidia in 1993, and although he owns only 3.5% of the company, his net worth is approximately $64 billion.Initially, Nvidia focused on producing video game graphics chips, but later, Huang made the strategic decision to venture into AI-based chip development, investing heavily in research and development. The company spent around $10 billion on R&D before launching its AI-based chips, which have now made Nvidia the largest AI chip manufacturer globally.Nvidia's chips are used in various applications, including cryptocurrency mining and cloud computing. Major companies like Amazon, Microsoft, and Google rely on Nvidia's chips for their cloud operations.