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Nvidia has overtaken Microsoft as the world’s most valuable company after its share price soared to an all-time high on June 18.
The AI-focused chip maker’s stock climbed to almost $136 by the end of trading day, taking its full value to $3.34tn (￡2.63tn). Nvidia shares price has nearly doubled since the beginning of the year.
The catalyst for its success is the insatiable demand for California-based companies’ advanced chips, which are powering the current AI boom.
Nvidia makes all types of semiconductors for various applications, but its status as the leading global supplier for the chips used in AI gives it an enviable position at the cutting edge of industry developments. As emerging technology evolves and the proliferation of AI products grows, so does the need and demand for Nvidia’s chips.
Big tech giants such as Microsoft, Meta, Apple, and Google owner Alphabet are among the heavyweight AI developers vying for supremacy. It works to Nvidia’s advantage while it works diligently on products of its own.
The company appears well placed to continue prospering from its market-leading position, but it will face increasing competition in the years ahead.
#Nvidia is now the world's most valuable company, with a market cap of $3.34 trillion, exceeding the GDP of all but 5 countries. Soon only the U.S. & China will have GDPs greater than $NVDA's market cap. Each NVDA GPU contains from .1 to .3 grams of #gold. They contain zero Sats.
— Peter Schiff (@PeterSchiff) June 18, 2024
Nvidia’s Success Story
Nvidia has experienced a stunning rise to the top. Just eight years ago, ts stock was worth less than 1% of its current price. Initially, its focus was on the computing behind video games. It was very prominent in developing the graphics card chip, also known as a GPU.
The company still has interests in gaming, data centers, and automotive, but its advanced chips—used in crypto mining, AI model training, driverless auto tech, and more—are the key reason why Nvidia and its flamboyant president, the leather jacket-clad Jensen Huang, are currently riding the crest of a wave.
