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Nvidia surges past Microsoft, now world’s most valuable company
Nvidia surpasses Microsoft as the world’s most valuable company, thanks to its dominance in AI chip market.
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Nvidia, once known only for its graphics cards for gamers, has officially surpassed Microsoft as the most valuable publicly traded company in the world.
According to CNBC, the chipmaker’s market capitalization now stands at a staggering $3.34 trillion. This milestone comes after Nvidia’s stock price climbed 3.6% on Tuesday, leaving Microsoft and Apple in its dust.
But how did Nvidia, a company that was founded in 1993 by three graduates from the University of California, Berkeley, rise to such lofty heights? The answer lies in its dominance of the market for artificial intelligence (AI) chips.
Over the past decade, Nvidia has built an almost insurmountable lead in producing graphics processing units (GPUs) that can handle the complex tasks required for AI, according to The New York Times.
These chips have become the go-to choice for companies like OpenAI, Microsoft, Alphabet, Amazon, and Meta, which are racing to develop and deploy AI models.
CNBC reports that Nvidia’s data center business, which sells these AI chips, has seen its revenue skyrocket by 427% year-over-year to $22.6 billion. This accounts for a whopping 86% of the company’s total sales.
The company’s success in the AI market has not gone unnoticed by investors. Nvidia’s stock has more than tripled over the past year, with its market value increasing by over $2 trillion, according to Forbes. This has made Jensen Huang, Nvidia’s co-founder and CEO, the 11th richest person in the world, with a net worth of $117 billion.
Nvidia’s rise to becoming the most valuable publicly traded company in the world is a testament to the growing importance of AI in our lives
As more companies look to harness the power of AI to drive innovation and growth, the demand for Nvidia’s chips is likely to continue to soar, which could see the company’s stock price rise even higher in the years to come.
However, Nvidia is not without its competitors in the AI chip market. Companies like Amazon, Google, Intel, and Advanced Micro Devices are all looking to challenge its dominance, according to The Verge.
But for now, Nvidia remains the king of AI chips, and its stock price reflects its strong position in this rapidly growing market.
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