19-6-2024 (NEW YORK) Nvidia has edged ahead of other tech giants to become the world’s most valuable publicly traded company, reflecting the growing might of artificial intelligence (AI) in the industry.
The California-based chip company, led by Jensen Huang, saw its market capitalisation reach approximately US$3.3 trillion, slightly surpassing Microsoft and Apple, following a 3.4% jump in its share price near 1:25 pm local time on Tuesday.
This monumental ascent, which has unfolded over the last 18 months, underscores the enthusiasm surrounding generative AI and Nvidia’s pivotal role in driving its advancement.
Nvidia’s profits have soared due to the torrid demand for its powerful GPU chips, which have set the industry’s pace in pushing new frontiers in AI. In May, the company reported a net profit of US$14.9 billion, while its revenue of US$26 billion was nearly four times what it recorded during the same fiscal quarter a year ago.
“Nvidia’s GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway,” noted a recent report from Wedbush Securities.
The financial services firm believes that over the next year, the race to a US$4 trillion market cap in the tech industry will be a closely watched competition between Nvidia, Apple, and Microsoft.
Nvidia’s ascension to the top of the corporate hierarchy underscores the pivotal role of AI in shaping the future of the tech industry. As enterprises and consumers alike rapidly embrace the transformative potential of AI, Nvidia’s cutting-edge GPU chips have become the cornerstone of this rapidly evolving landscape.
“We believe over the next year the race to US$4 trillion market cap in tech will be front and centre between Nvidia, Apple, and Microsoft,” the Wedbush Securities report noted, highlighting the fierce competition among industry leaders to capitalize on the AI-driven revolution.
