#NvidiaSurge #AITechnology #MarketLeaders
Nvidia Surpasses Microsoft in Market Capitalization, Becomes Most Valuable Public Company
In a remarkable milestone, Nvidia has surpassed Microsoft in market capitalization, solidifying its position as the most valuable public company globally. This achievement marks a significant shift in the tech industry, driven primarily by the rapid growth of generative artificial intelligence.
Nvidia's market capitalization has reached an astonishing $3.33 trillion, a nine-fold increase since the end of 2022. The chipmaker's shares climbed 3.2% in mid-day trading on Tuesday, further cementing its lead. This surge is largely attributed to the company's dominance in the AI chip market, particularly in data centers, where it holds approximately 80% of the market share.
The company's data center business has experienced a staggering 427% revenue growth year-over-year, reaching $22.6 billion and accounting for about 86% of Nvidia's total sales. This growth is fueled by the increasing demand for AI chips from major tech companies such as OpenAI, Microsoft, Alphabet, Amazon, and Meta.
Nvidia's co-founder and CEO, Jensen Huang, has seen his net worth soar to about $117 billion, making him the 11th wealthiest person in the world, according to Forbes. The company's rapid ascent has also led to a 10-for-1 stock split, which went into effect on January 7, enhancing its chances of being added to the Dow Jones Industrial Average.
Microsoft, another major beneficiary of the AI boom, has seen its shares rise about 20% this year. The software giant has integrated OpenAI's AI models into its key products, including Office and Windows, and is a significant buyer of Nvidia's graphics processing units (GPUs) for its Azure cloud service.
Nvidia's remarkable rise has positioned it alongside Apple and Microsoft as the most valuable U.S. companies, marking a significant shift in the tech industry landscape.
Original Article: https://www.cnbc.com/2024/06/18/nvidia-passes-microsoft-in-market-cap-is-most-valuable-public-company.html
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