Nvidia Dethrones Microsoft and Apple to Become World's Most Valuable Public Company
Summary:
Nvidia has become the world's most valuable publicly listed company, surpassing Microsoft and Apple with a current market cap of $3.34 trillion. This follows a 10-for-1 stock split in June. As a company that begun as a gaming enterprise, Nvidia now develops technology for the artificial intelligence age. Their chips, in high demand since the GPU-mining era of cryptocurrencies, continue to be the choice for industry giants like OpenAI, Google, Amazon, and Microsoft. With impressive Q1 results, Nvidia plans to release new AI chipsets annually, indicating a modern industrial revolution impacting all sectors of the global economy.
Nvidia has outshone Microsoft and Apple to assume the position of the globe's topmost valuable publicly listed firm. The tech titan, renowned for its graphics and AI chip production, has achieved a market capitalisation of $3.34 trillion, marginally ahead of Microsoft's $3.32 trillion and Apple's $3.29 trillion. Nvidia's shares are at present exchanging hands at roughly $135 after a 10-for-1 stock split initiated in June. Before this split, Nvidia's shares were floating around the $1,200 mark.
Enacting the stock split was a strategic move targeted at integrating Nvidia into the Dow Jones Industrial Average. This index, being a weighted one, gives preference to companies whose share prices aren't excessively high, thereby avoiding the distortion of the average by a sole company.
Nvidia, birthed in 1991, started as a gaming enterprise that focused on graphics cards creation for performance-driven video games. The company's current concentration is on developing the technology to support the artificial intelligence age.
Nvidia witnessed a surge in demand for its graphics processors during the cryptocurrencies GPU-mining phase which started around 2010 and concluded with the launch of application-specific integrated circuits (ASIC) for proof-of-work cryptocurrency mining.
Nvidia's muscular graphics processors are now the choice for industry powerhouses like OpenAI, Google, Amazon, and even Microsoft for the enhancement of their artificial intelligence systems and infrastructure.
The chip-making titan disclosed impressive Q1 results, recording $26 billion in revenues for the business quarter. A bulk of this revenue, $22.6 billion to be precise, was generated from data center operations.
The CEO and founder of Nvidia, Jensen Huang, validated these results by announcing that the firm will annually roll out new artificial intelligence chipsets. This initiative is seen by Huang as part of a contemporary industrial revolution that will cut across every segment of the global economy.
In the past, Nvidia was focused on releasing fresh models of its premium microprocessors every two years. The Ampere model was launched in 2020, Hopper in 2022, and Blackwell architecture in 2024.
Published At
6/19/2024 1:57:45 AM
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