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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Artificial Intelligence»Nvidia crowned world’s most valuable company amidst AI industry surge
    Jensen Huang NVIDIA
    CEO Jensen Huang

    Nvidia crowned world’s most valuable company amidst AI industry surge

    0
    By Tapiwa Matthew Mutisi on June 19, 2024 Artificial Intelligence, Business, News, Stock Market, Technology

    On Tuesday, Nvidia achieved a significant milestone by surpassing Microsoft to become the world’s most valuable company, a testament to the pivotal role its chips are playing in the burgeoning artificial intelligence market.

    Nvidia’s stock experienced a notable uptick, rising by 3.5% to reach a share price of $135.58. This increase propelled the company’s market capitalization to an impressive $3.34 trillion. This achievement comes shortly after Nvidia had already leapfrogged over Apple, claiming the title of the second most valuable company.

    The company’s journey to the top has been remarkable, transitioning from its original reputation as a manufacturer of video game graphics chips to a dominant force in the global market. Nvidia’s financial success has been particularly driven by the tech industry’s massive pivot towards artificial intelligence. As AI becomes increasingly integral to technological advancement, major corporations are turning to Nvidia’s products, which are now seen as essential components for AI infrastructure.

    Nvidia’s meteoric rise has not only outshined other tech giants like Google and Apple but has also sparked a flurry of investments and market speculation, highlighting the company’s influence and the high expectations for its future contributions to technology and AI.

    Nvidia’s recent ascent in the stock market has propelled Wall Street to new heights, with the S&P 500 closing at a record 5,487.03 on Tuesday, thanks to a modest increase of 0.3%.

    The company’s shares have experienced a remarkable rally, soaring approximately 180% this year alone, a stark contrast to Microsoft’s shares, which have seen a more modest 19% increase. This surge is largely attributed to the high demand for Nvidia’s premium processors, which has exceeded the available supply. Major tech corporations such as Microsoft, Meta Platforms, and Alphabet, the parent company of Google, are all in a competitive race to expand their AI-computing capabilities and secure a leading position in this nascent technology.

    Nvidia’s share price leap on Tuesday added an extraordinary $103 billion to its market value, setting a new record high for the company.

    To make its shares more accessible to individual investors, Nvidia implemented a 10-for-one stock split on June 7, effectively lowering the price per share and broadening its appeal. Sam North, a market analyst at the investment platform eToro, noted that such stock splits make shares more affordable for retail investors, who stand to benefit significantly from Nvidia’s decision.

    Nvidia’s processors are at the heart of some of the AI industry’s most prominent tools, including OpenAI’s ChatGPT chatbot. The company’s escalating share price and growing significance in the tech sector have turned its earnings reports and corporate announcements into highly anticipated events for investors in Silicon Valley. The heightened demand for Nvidia’s chips has also driven up the price per unit to around $30,000, contributing to a substantial increase in the company’s revenue.

    Nvidia’s expanding influence in the technology sector has not only elevated the company’s status but has also catapulted its 61-year-old CEO, Jensen Huang, into the elite ranks of tech moguls, significantly boosting his personal wealth. In the span of approximately 18 months, Huang’s net worth has skyrocketed by an astonishing $93 billion, propelling his total wealth beyond the $100 billion mark.

    The company’s market valuation has seen a rapid and remarkable growth, doubling from $1 trillion to $2 trillion within a mere nine months by February. This momentum continued unabated, with Nvidia reaching a $3 trillion market capitalization in just a little over three months by June, showcasing the company’s accelerated growth trajectory and Huang’s ascent among the world’s wealthiest individuals.

    Nvidia hits $3 trillion market cap; passes Apple to be 2nd behind Microsoft

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    AI Apple artificial intelligence (AI) Business Investments Market Capitalization Microsoft Nvidia stock market Technology valuation
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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