Nvidia Overtakes Microsoft & Apple: World's Most Valuable Company
0Nvidia Overtakes Microsoft & Apple: World's Most Valuable Company
Nvidia has claimed the title of the world's most valuable company, surpassing tech giants Microsoft and Apple. On Tuesday, the American chipmaker's stock shares climbed 3.6%, reaching a total market cap of $3.34 billion. This impressive achievement follows a 170% increase in stock share prices so far in 2024, a significant jump after a positive first-quarter report earlier this year.
Nvidia's success can be attributed to its dominant position in the AI chip market, with approximately 80% market share for AI chips used in data centers. This crucial business segment serves industry leaders such as OpenAI, Microsoft, Alphabet, Amazon, Meta, and others, according to CNBC.
The company's first-quarter report revealed a staggering 427% increase in revenue from its data center business compared to the previous year, accounting for about 86% of total sales. Nvidia's rise in the AI industry coincides with the growing popularity of generative AI.
Once synonymous with graphics cards and chips for gamers, Nvidia has expanded its horizons beyond cryptocurrency mining chips and cloud gaming subscriptions. The company has found its new niche in the world of AI, solidifying its position as a leading technology innovator.
Forbes recently reported that Nvidia co-founder and CEO Jensen Huang is now the 11th wealthiest person in the world, with a net worth of $117 billion.
What do you think about Nvidia's meteoric rise in the AI chip market? Share your thoughts in the comments below!