Nvidia Becomes Most Valuable Public Company By Market Cap

Nvidia is the world’s most valuable public company in the world in Market cap in 2024, moving from second position. The market valuation of the massive chip manufacturer reached 3.6% in the shares, bringing its market capitalization to $3.34 trillion, exceeding Microsoft’s current $3.32 trillion valuation. Nvidia overtook Apple and reached $3 trillion earlier this month. Nvidia has been known for its graphics chips for a long time in the specialized gaming community.

This year, Nvidia’s share price has increased by over 170%, and it continued to rise following the company’s May first-quarter earnings announcement. Since the end of 2022, the stock has increased by a factor of more than nine; this increase has occurred in tandem with the development of generative artificial intelligence. Tuesday’s 1.1% decline in Apple stock valued the iPhone manufacturer at $3.29 trillion.

About 80% of the market for AI chips used in data centres is held by Nvidia. This industry has grown dramatically as companies like Microsoft, OpenAI, Amazon, Meta, and Alphabet have fought for the processors required to create AI models and handle ever-larger workloads. With the Blackwell B200 GPU anticipated later this year, the company now intends to release a new AI chip every year.

In the latest quarter, Nvidia’s data centre division generated $22.6 billion in revenue, up 427% year over year and making up almost 86% of the chipmaker’s overall revenues. In May, Nvidia claimed to have made an incredible $14 billion in profit as a result of all the chips it was selling. With a $3.15 trillion market valuation, Microsoft is presently the only company that Nvidia lags. Although the stock of the chipmaker is presently trading at $1,220 per share, Nvidia split the shares in Junee 2024. Nvidia announced a 10-for-1 stock split along with the publication of its earnings, and the split became effective on June 7.

When it was first established in 1991, Nvidia mainly supplied processors for gamers to operate 3D games during those first few decades. Additionally, it has experimented with cloud gaming subscriptions and bitcoin mining chips. However, throughout the previous two years, Nvidia’s stock has surged as Wall Street began to acknowledge the company’s technology as the driving force behind the AI explosion, which doesn’t appear to be slowing down. Co-founder and CEO Jensen Huang’s net worth increased to over $117 billion as a result of the rally, ranking him as the eleventh richest person in the world by Forbes.

This year, Microsoft shares have increased by around 20%. The massive software company has also benefited greatly from the AI boom since Microsoft acquired a sizable portion of OpenAI and incorporated the AI models of the startup into some of its most crucial products, such as Windows and Office. For its Azure cloud service, Microsoft is one of the largest purchasers of graphics processing units (GPUs) from Nvidia. The business just unveiled Copilot+, a new line of laptops built to run its AI models.

Nvidia is currently positioned as the most valued U.S. company while Apple and Microsoft exchanged titles for the last few years. Because of how quickly Nvidia has risen to prominence, it has not yet been included in the Dow Jones Industrial Average, which is a stock benchmark comprised of 30 of the most valuable American corporations. Due to the split that commenced on June 7th, Nvidia had a better chance of being included in the Dow, a price-weighted index that favours businesses with higher stock prices over those with larger market capitalizations.