Nvidia has made history by becoming the world’s most valuable public company. On Tuesday, the American chipmaker’s stock shares surged, catapulting its market cap to an impressive $3.34 trillion and surpassing tech giants Microsoft and Apple.
Nvidia’s Remarkable Growth
Nvidia’s stock share prices have soared by 170% so far in 2024, following a positive first-quarter report earlier this year. The stock has multiplied ninefold since the end of 2022, a surge closely linked to the rising popularity of generative AI.
Dominance in the AI Market
Nvidia controls approximately 80% of the market for AI chips used in data centers, a crucial sector for companies like OpenAI, Microsoft, Alphabet, Amazon, Meta, and others. According to CNBC, this dominance has significantly boosted Nvidia’s market value.
Financial Performance
The latest quarterly report highlighted a staggering 427% year-over-year increase in revenue from Nvidia’s data center business, which now accounts for about 86% of the company’s total sales.
Shifting Focus to AI
Nvidia, once known primarily for its graphics cards and gaming chips, has successfully pivoted to focus on AI. Despite past ventures into cryptocurrency mining chips and cloud gaming subscriptions, the company’s future now lies firmly in the AI sector.
CEO Jensen Huang’s Rising Wealth
Nvidia’s co-founder and CEO, Jensen Huang, has also seen his wealth skyrocket. Forbes recently reported that Huang is now the 11th wealthiest person in the world, with a net worth of $117 billion.
Stay tuned for more updates as Nvidia continues to shape the future of AI and technology.
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