Nvidia surged ahead of other tech giants on Tuesday, becoming the world’s most valuable publicly traded company. This achievement highlights the growing influence of artificial intelligence (AI) in the tech industry.
The chipmaker, which has experienced a remarkable rise over the past 18 months thanks to the excitement surrounding generative AI, saw its stock increase by 3.4 percent around 1:25 pm (1725 GMT). This boost gave Nvidia a market capitalization of approximately $3.3 trillion, surpassing both Microsoft and Apple.
Nvidia, headquartered in California and led by Jensen Huang, has seen its profits soar due to the high demand for its powerful graphics processing unit (GPU) chips. These chips are setting the pace for new advancements in AI technology. In May, Nvidia reported a net profit of $14.9 billion and revenues of $26 billion, nearly four times the amount it earned in the same fiscal quarter the previous year.
“We believe over the next year the race to $4 trillion market cap in tech will be front and center between Nvidia, Apple, and Microsoft. Nvidia’s GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway,” stated a note from Wedbush Securities earlier this week.
Earlier this year in February, Nvidia reached a market value of $2 trillion for the first time, fueled by the overwhelming demand for its chips, which positioned the Silicon Valley firm at the forefront of the generative artificial intelligence boom, according to Reuters.
Founded in 1993, Nvidia is a leading technology company renowned for its GPUs, which dominate both gaming and professional markets under the GeForce and Quadro brands. The company’s GPUs are essential in AI and machine learning, with its CUDA platform enabling parallel computing.
Beyond GPUs, Nvidia has expanded into the automotive industry with its Drive platform for autonomous vehicles. It has also ventured into other sectors like healthcare and robotics with the Jetson product line. Nvidia’s strategic acquisitions, such as Mellanox Technologies and the pending ARM Holdings deal, have strengthened its market reach and technological capabilities.
Nvidia’s stock, traded under the ticker NVDA, reflects its strong position and influence in the tech industry. As the company continues to innovate and expand its footprint, its recent milestone as the world’s most valuable publicly traded company underscores its pivotal role in the ongoing technological revolution.