Nvidia’s rise is fueled by the booming demand for artificial intelligence, making its chips and graphics processing units highly valuable to tech companies like Microsoft, Meta, Amazon, and Alphabet. Microsoft alone accounts for around 15% of Nvidia’s revenue.
Nvidia controls between 70% and 95% of the AI chip market. The company reported $8.4 billion in net income for the 2023 fiscal year and is expected to surpass Apple’s net income within four years.
Nvidia CEO Jensen Huang’s net worth is estimated at $118.8 billion, making him the 11th richest person in the world, the highest he has ranked on Forbes’ real-time billionaires list.
Nvidia’s market cap has surged by 177% since the beginning of the year, when shares were trading at an adjusted price of $48.17 after the stock split.
On Tuesday afternoon, Nvidia’s shares rose over 3% to about $135.65, while Microsoft’s shares slightly decreased to $447.58.These changes in stock prices pushed Nvidia’s market cap to $3.33 trillion, just above Microsoft’s $3.32 trillion.
Nvidia’s stock has increased by about 12% since its recent stock split, which lowered its share price from $1,210 to $120.At the start of the year, Nvidia’s market value was $1.2 trillion, less than half that of Microsoft and Apple.
In the last quarter, Nvidia’s data center revenue soared by 427% year-on-year, reaching $22.6 billion and accounting for about 86% of the company’s total sales. Nvidia’s shares have increased by over 170% this year, with further gains following the company’s first-quarter earnings report in May. Since the end of 2022, Nvidia’s stock has risen more than ninefold, aligning with the surge of generative artificial intelligence.
Founded in 1991, Nvidia initially focused on hardware, selling chips to gamers for 3D games. Over time, it expanded its scope to include chips for cryptocurrency mining and cloud gaming subscriptions. Last month, Nvidia announced a 10-for-1 stock split, effective June 7.
This move enhances Nvidia’s chances of being included in the Dow, a price-weighted index, meaning companies with higher stock prices have a greater influence on the benchmark.
Nvidia, known for its advanced chip designs and AI technology, has become the world’s most valuable public company, surpassing Microsoft’s market value on Tuesday. This comes shortly after Nvidia overtook Apple’s market cap, following a period of significant stock price increases.
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