Nvidia, the pioneering chipmaker at the forefront of the AI revolution, has dethroned Microsoft to become the world’s most valuable publicly traded company. With a staggering market capitalization of $3.335 trillion, Nvidia’s rise to the top spot underscores the immense potential and growth prospects of the artificial intelligence industry.
On June 18, 2024, Nvidia’s shares climbed 3.5% to $135.58, propelling its market capitalization to an unprecedented $3.335 trillion, surpassing Microsoft as the world’s most valuable company. This milestone was driven by the company’s dominance in the AI chip market, controlling approximately 80% of the AI chips used in data centers. Founded in 1991, Nvidia initially focused on graphics chips for gaming before strategically investing in AI technology, and its stock price has surged nearly 174% in 2024 alone, after more than tripling in 2023.
Nvidia’s meteoric rise can be attributed to its cutting-edge graphics processing units (GPUs), which have become indispensable for training AI algorithms and powering innovative applications like image generators and chatbots. The company currently dominates approximately 70% of the market for AI chips, granting it significant influence in the industry and attracting regulatory scrutiny. Nvidia’s data center business, which generates approximately 86% of its total sales, reported a staggering revenue of $22.6 billion in the most recent quarter, fueled by the burgeoning field of generative AI and the insatiable demand for its chips from tech giants.
Nvidia’s co-founder and CEO, Jensen Huang, has seen his personal fortune skyrocket alongside the company’s meteoric rise. His net worth now exceeds a staggering $117 billion, catapulting him into the ranks of the world’s wealthiest individuals. This astronomical wealth can be directly attributed to the unprecedented demand for Nvidia’s AI chips, which have propelled the company’s valuation to unprecedented heights.
