Technology company Nvidia has recently overtaken Microsoft to become the world’s most valuable company. This significant shift in position is a result of Nvidia’s key role in the rapidly expanding Artificial Intelligence (AI) sector, primarily driven by its high-end processors.
Data from S&P Global indicates that on Tuesday, June 18, 2024, Nvidia surpassed both Microsoft and Apple to claim the top spot as the most valuable public company globally. The company’s remarkable growth can be attributed to its involvement in generative artificial intelligence and the growing demand for its graphics processing units (GPUs), which have been essential in the development of AI systems.
Nvidia’s rise in value has been incredibly rapid, with its market valuation increasing from just over $400 billion two years ago to over $3 trillion within a year. This surge was further evidenced by a 3.6 percent increase in Nvidia’s share price on Tuesday, reaching a value of $3.34 trillion, surpassing both Microsoft and Apple.
The transformative impact of artificial intelligence on large companies is exemplified by Nvidia’s ascent to the top spot in market capitalization. CEO Jensen Huang’s early recognition of the importance of GPUs in AI development has positioned Nvidia as a leader in the market, controlling over 80 percent of the AI system chip market.
Nvidia’s success has not gone unnoticed, with Huang becoming a prominent figure in the tech industry. The company’s rapid growth is reminiscent of the dot-com era, with its current market value exceeding that of tech giants Apple and Microsoft.
Despite facing competition from other tech companies developing their own AI chips, Nvidia remains confident in its position due to its decade-long head start and a large community of AI programmers who favor its technology. As Huang stated in a recent conference call with analysts, “The next industrial revolution has begun.”
Wall Street will continue to monitor Nvidia closely for signs of a slowdown, as the company strives to maintain its dominance in the AI market. With its consistent growth and projections for increased sales, Nvidia’s future remains bright as it continues to push the boundaries of computing and AI technology.
