Nvidia Surpasses Microsoft as the Most Valuable Public Company
Nvidia, well known in the niche gaming community for its graphics chips, is now the most valuable public company in the world.
The chip maker’s shares rose 3.6% on Tuesday, pushing the company’s market capitalization to $3.34 trillion, surpassing Microsoft, which is now valued at $3.32 trillion. Earlier this month, Nvidia surpassed the $3 trillion mark for the first time and overtook Apple.
Nvidia’s shares have risen more than 170% this year and increased significantly after the company released its first-quarter report in May. The stock price has risen more than ninefold since the end of 2022, coinciding with the emergence of generative artificial intelligence.
Apple’s shares fell 1.1% on Tuesday, resulting in the iPhone maker’s market value at $3.29 trillion.
Nvidia holds around 80% of the artificial intelligence chip market, used in expanding data centers and businesses as OpenAI, Microsoft, Alphabet, Amazon, Meta, and others rush to acquire the processors needed to create artificial intelligence models and process growing workloads.
In the latest quarter, Nvidia’s data center sales volume increased by 427% compared to the previous year, reaching $22.6 billion, accounting for around 86% of the chipmaker’s total sales.
Founded in 1991, Nvidia spent its first decade mostly as a company selling hardware to gamers for running 3D games. It also engaged in producing chips for cryptocurrency mining and cloud gaming subscriptions.
