NVIDIA’s market value surpasses Microsoft’s and becomes the most valuable public company | Wilnesh News

NvidiaLong known in the niche gaming world for its graphics chips, it is now the world’s most valuable public company.

Shares of the chipmaker rose 3.2% in midday trading on Tuesday, lifting the company’s market value to $3.33 trillion, more than Microsoft. Earlier this month, Nvidia’s market capitalization exceeded $3 trillion for the first time and exceeded apple.

Nvidia shares are up more than 170% so far this year and have climbed even higher after the company reported first-quarter earnings in May. The stock has risen more than ninefold since the end of 2022, a rise that coincides with the emergence of generative artificial intelligence.

Nvidia has about 80% of the data center artificial intelligence chip market share. This business has grown rapidly with OpenAI, Microsoft, letter, Amazon, Yuan Other companies are rushing to acquire the processors they need to build artificial intelligence models and run increasingly large workloads.

In the most recent quarter, Nvidia’s data center business revenue increased by 427% year-on-year to US$22.6 billion, accounting for approximately 86% of the company’s total sales.

Apple shares fell about 1% in trading on Tuesday, with a market value of $3.28 trillion. Microsoft’s stock price fell less than one percentage point, with its market value reaching $3.32 trillion.

Founded in 1991, Nvidia spent its first few decades primarily as a hardware company, selling chips that ran 3D games to gamers. It is also involved in cryptocurrency mining chips and cloud gaming subscriptions.

But over the past two years, Nvidia’s stock price has soared as Wall Street has come to realize that Nvidia’s technology is the engine behind the explosive growth of artificial intelligence that shows no signs of slowing down. The rally has boosted co-founder and CEO Jensen Huang’s net worth to about $117 billion, making him the 11th richest person in the world, according to statistics. Forbes.

Microsoft shares have risen about 20% so far this year. The software giant is also a major beneficiary of the artificial intelligence boom, taking a large stake in OpenAI and integrating the startup’s artificial intelligence model into its most important products, including Office and Windows. Microsoft is one of the largest buyers of graphics processing units (GPUs) for Nvidia’s Azure cloud service. The company just released a new generation of laptops designed to run its artificial intelligence model, called Copilot+.

Nvidia is the newcomer to the title of America’s most valuable company. Apple and Microsoft have been exchanging this title over the past few years.

Nvidia’s rise has been so rapid that the company has yet to be included in the Dow Jones Industrial Average, a 30-stock benchmark that historically includes the most valuable U.S. companies. While releasing its financial report last month, Nvidia also announced a 10-to-1 stock split, which took effect on January 7.

The split gives Nvidia a better chance of being included in the Dow, which is a price-weighted index, meaning companies with higher share prices (as opposed to market capitalization) have outsized influence on the benchmark.

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