Nvidia, a leading chipmaker, has surpassed Microsoft to become the world’s most valuable public company. The company’s market capitalization reached $3.335 trillion, surpassing Microsoft’s market cap of approximately $3.32 trillion. This achievement was marked by a 3.2% rise in Nvidia’s shares in midday trading, lifting the company’s market cap to $3.33 trillion.
Nvidia’s shares have seen a more than ninefold increase since the end of 2022, coinciding with the emergence of generative artificial intelligence. The company holds about 80% of the market share for AI chips used in data centers, a business that has grown exponentially as tech giants like OpenAI, Microsoft, Alphabet, Amazon, and Meta have raced to acquire the processors needed to build AI models and run large workloads.
For the most recent quarter, revenue in Nvidia’s data center business rose 427% from a year earlier to $22.6 billion, accounting for about 86% of the chipmaker’s total sales. This surge in Nvidia’s market value has also significantly increased the net worth of co-founder and CEO Jensen Huang, making him the 11th wealthiest person in the world.
The rise of Nvidia signifies a shift in the tech industry, with the company’s technology recognized as the engine behind an explosion in AI that shows no signs of slowing.
Read more: www.cnbc.com