7-6-2024 (SANTA CLARA) Nvidia, the pioneering chipmaking giant, has achieved a significant milestone by becoming the second most valuable company in the world. On Wednesday afternoon, Nvidia’s market capitalization soared to an astounding $3.01 trillion, surpassing the iconic tech behemoth Apple, which currently stands at $3 trillion.
This unprecedented surge in Nvidia’s valuation can be directly attributed to the company’s unwavering leadership in the AI race, spearheaded by its flagship H100 chip. As the demand for cutting-edge AI technology continues to skyrocket, Nvidia’s market capitalization has followed suit, reaching unprecedented heights in a relatively short span of time.
The journey to this momentous achievement began in May 2023, when Nvidia first crossed the coveted $1 trillion market capitalization threshold. Since then, the company’s ascent has been nothing short of meteoric, propelling it past the $2 trillion mark in February of this year, surpassing the combined valuations of tech titans Amazon and Alphabet.
The driving force behind Nvidia’s soaring success lies in the insatiable global demand for its cutting-edge chips, which have become indispensable in powering the rapidly evolving AI landscape. In May, the company reported a staggering $14 billion in profits, a testament to the unparalleled demand for its AI-accelerating hardware.
Nvidia’s current stock price hovers around an impressive $1,220 per share, a figure that is set to undergo a split on June 7th, further solidifying the company’s position as a highly sought-after investment opportunity.
According to CNBC, Nvidia’s AI accelerators command an overwhelming market share, ranging from 70 percent to an astonishing 95 percent, firmly cementing the company’s dominance in the AI chip market. Determined to maintain its lead, Nvidia has unveiled ambitious plans to launch a new AI chip on an annual basis, starting with the much-anticipated Blackwell B200 GPU, expected to hit the market later this year.
With Microsoft currently holding the top spot as the world’s most valuable company with a market capitalization of $3.15 trillion, Nvidia’s meteoric rise has propelled it past the likes of Apple and into the rarified air of the tech industry’s elite.
