Nvidia has recently surpassed Microsoft to become the world’s most valuable company, with its chips playing a crucial role in the artificial intelligence market. This rise in market value comes as Nvidia’s stock price climbed by 3.2% to $135.21, resulting in a market capitalization of $3.326 trillion. This achievement follows its recent overtaking of Apple to become the second most valuable company.
The company, once primarily focused on producing video game chips, has now evolved into a global powerhouse in the technology industry. Its profits have significantly increased due to the growing demand for artificial intelligence technology, leading major companies to turn to Nvidia for their products that form the foundation of AI systems.
Nvidia’s remarkable growth has outpaced industry giants like Google and Apple, sparking a wave of investment and market speculation. The stock has surged by 173% this year, far exceeding the 19% increase in Microsoft shares. The high demand for Nvidia’s top-tier processors has caused a supply shortage, further driving up the stock price.
In response to the soaring stock price, Nvidia recently implemented a 10-for-one stock split, effective on June 7th. This move aims to make the stock more accessible to individual investors by reducing the price per share. Market analysts, such as Sam North from eToro, believe that the stock split benefits retail investors, making it easier for them to purchase Nvidia shares.
Nvidia’s chips are integral to various AI tools in the industry, including OpenAI’s ChatGPT chatbot. The company’s increasing stock price and influence have turned its earnings reports and announcements into highly anticipated events for investors in Silicon Valley. The growing demand for Nvidia’s chips has driven the price per unit to around $30,000, leading to a surge in revenue for the company.
CEO Jensen Huang, at 61 years old, has seen his net worth skyrocket by $93 billion over the past year and a half, making him one of the world’s wealthiest individuals with a total worth exceeding $100 billion. Nvidia’s market value has expanded from $1 trillion to $2 trillion in just nine months, reaching $3 trillion in June in a little over three months.
As Nvidia continues to lead the market with its advancements in artificial intelligence, the company’s exceptional growth trajectory and innovation show no signs of slowing down. Investors and industry experts are closely watching as Nvidia cements its position as a key player in the future of technology.
