Nvidia, once a niche chipmaker, has skyrocketed to become the world’s most valuable public company, surpassing tech giants like Microsoft and Apple. The company’s meteoric rise has been fueled by its industry-leading AI chips.
CNBC reports that Nvidia, a company long known for its graphics chips in the gaming community, has now claimed the top spot as the most valuable public company in the world. On Tuesday, Nvidia’s shares climbed 3.6 percent, pushing its market cap to a staggering $3.34 trillion, edging past Microsoft’s $3.32 trillion valuation. This milestone comes on the heels of Nvidia’s first-time crossing of the $3 trillion mark earlier this month, surpassing Apple in the process.
Nvidia’s meteoric rise has been nothing short of extraordinary, with shares up more than 170 percent year-to-date. The stock’s upward trajectory has been fueled by the company’s dominant position in the AI chip market, particularly in data centers. Nvidia controls approximately 80 percent of this market, providing the crucial processors needed by tech giants like OpenAI, Microsoft, Alphabet, Amazon, and Meta to build AI models and handle increasingly large workloads.
The company’s first-quarter earnings report in May further solidified its position, with revenue in the data center business skyrocketing by 427 percent year-over-year to $22.6 billion, accounting for a whopping 86 percent of Nvidia’s total sales. This impressive growth has not gone unnoticed by Wall Street, which has recognized Nvidia’s technology as the driving force behind the ongoing AI explosion.
Nvidia’s journey to the top has been a transformative one. Founded in 1991, the company initially focused on hardware, primarily selling chips for gamers to run 3D titles. Over the years, it has also ventured into cryptocurrency mining chips and cloud gaming subscriptions. However, it’s the company’s pivot towards AI that has catapulted it to new heights, with co-founder and CEO Jensen Huang’s net worth soaring to approximately $117 billion, making him the 11th wealthiest person in the world, according to Forbes.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
