With a 9-fold increase in market capitalization since the end of 2022, Nvidia officially surpassed Microsoft and Apple to become the world's largest public company.
Nvidia shares closed up 3.6% on June 18, bringing its market capitalization to $3.34 trillion, surpassing Microsoft ($3.32 trillion). Earlier this month, Nvidia hit the $3 trillion mark for the first time, replacing Apple as the runner-up.
The rally has been fueled by strong demand for Nvidia’s AI chips, with shares up more than 170% in 2024 and about 1,100% from their October 2022 low.
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| With its AI chips, Nvidia has become the world's most valuable company by market capitalization. |
It took Nvidia just 96 days to go from $2 trillion to $3 trillion in market capitalization. According to Bespoke Investment Group, it took Microsoft 945 days to achieve the same increase in market capitalization, while Apple took 1,044 days.
Also in the trading session on June 18, Apple shares fell 1.1%, so its capitalization decreased to only 3.29 trillion USD.
Nvidia has been one of the biggest beneficiaries of the AI boom. Its revenue has skyrocketed over the past year as tech giants like Google, Microsoft, Meta, Amazon, and OpenAI have bought billions of dollars worth of graphics chips.
In its most recent quarter, Nvidia’s data center revenue grew 427% from a year earlier to $22.6 billion, accounting for about 86% of the company’s total revenue. Founded in 1991, Nvidia spent its first few decades as a hardware company selling chips to gamers. It also developed cryptocurrency mining chips and sold cloud gaming packages.
But over the past two years, Nvidia’s stock has skyrocketed as Wall Street has recognized its technology as the driving force behind the AI boom. The boom has also boosted the fortune of founder and CEO Jensen Huang to about $117 billion, making him the 11th richest person in the world, according to Forbes.
Microsoft shares are up about 20% this year. The tech giant has also benefited from AI after taking a major stake in OpenAI and integrating the startup’s models into its most important products, including Office and Windows.
Microsoft is one of the biggest buyers of Nvidia chips, which power its Azure cloud service, and recently launched a new generation of laptops designed to run the Copilot+ AI model.
Over the years, the position of the world's most valuable company has been traded between Apple and Microsoft, with Nvidia being the "new kid".
Source: https://baoquocte.vn/vuot-mat-microsoft-nvidia-chinh-thuc-tro-thanh-cong-ty-gia-tri-nhat-the-gioi-275508.html
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