Nvidia Surpasses Tech Giants in Market Value
Nvidia Corp. has become the world’s most valuable company, overtaking tech giants Microsoft and Apple. The semiconductor company’s stock rose by 3.5% on Tuesday, closing at $135.58 per share and putting its market capitalization at about $3.3 trillion.
Nvidia Edges Out Microsoft and Apple
Earlier this month, Nvidia surpassed Apple in market value for the first time since 2002. The top stocks have been competing for the leading position, with Nvidia finally edging past both of its big-tech peers. Last week, Apple also briefly overtook Microsoft to trade in the top spot.
AI Fuels Nvidia’s Growth
Nvidia’s rise is an evidence to the growing importance of artificial intelligence (AI) in the tech world. The company is seen as the biggest and earliest beneficiary of AI technology, dominating the market with its highly sought-after chips. These chips power data centers that run complex computing tasks required by AI applications. Demand for Nvidia’s H100 accelerators is surging, driving the chipmaker’s sales up by more than 125% last year.
The Race to a $4 Trillion Market Cap
According to Daniel Ives, an analyst at Wedbush Securities, the race to a $4 trillion market cap in tech will be a tight contest between Nvidia, Apple, and Microsoft. Microsoft has also benefited from the AI wave, thanks to its investment and partnership with OpenAI, the creator of ChatGPT. Apple’s shares rallied recently after it unveiled its plans for using AI technology.
Nvidia’s CEO Among the World’s Richest
Nvidia’s surging stock price has significantly boosted the wealth of its co-founder and Chief Executive Officer Jensen Huang. His net worth has climbed nearly $75 billion since the beginning of the year to $119 billion, making him one of the world’s richest people.
More Than Just a Chipmaker
Investors and industry experts argue that Nvidia is more than just a chipmaker. The company sells entire systems, including proprietary software and development ecosystems. Michael Lippert, vice president and portfolio manager at Baron Capital Inc., emphasized Nvidia’s comprehensive offerings in a recent interview.
Nvidia’s Record-Breaking Climb
Nvidia’s swift ascent to the top has been record-breaking. The company is one of the few firms to have demonstrated significant revenue growth from AI. Its shares have risen more than 170% in 2024, adding over $2 trillion to its market capitalization.
The New Gold or Oil in Tech
Nvidia’s GPU chips are considered the new gold or oil in the tech sector, as more enterprises and consumers adopt AI technology. This trend is part of the 4th Industrial Revolution, which is well underway.
