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Nvidia, once known primarily in the gaming community for its graphics chips, has now become the most valuable public company in the world. Shares of the chipmaker rose 3.6% on Tuesday, pushing its market cap to $3.34 trillion, surpassing Microsoft, which is now valued at $3.32 trillion. Earlier this month, Nvidia hit the $3 trillion mark for the first time, overtaking Apple.
- Nvidia's shares have surged more than 170% this year, especially after the company reported strong first-quarter earnings in May. The stock has multiplied over ninefold since the end of 2022, driven by the rise of generative artificial intelligence. Nvidia now dominates about 80% of the AI chip market used in data centers, with its revenue in this sector increasing 427% from last year to $22.6 billion in the most recent quarter. Meanwhile, Microsoft shares are up about 20% this year, benefiting from its significant stake in OpenAI and integration of AI models into key products. Nvidia's recent 10-for-1 stock split, effective this month, could pave the way for its inclusion in the Dow Jones Industrial Average.
Why it matters
Founded in 1991, Nvidia initially focused on hardware for gamers but has since expanded into AI, cryptocurrency mining chips, and cloud gaming subscriptions. Its rapid ascent has elevated co-founder and CEO Jensen Huang’s net worth to about $117 billion.
