Nvidia The Most Valuable Company In The World, Surpasses Microsoft
Nvidia (NVDA) has surpassed Microsoft (MSFT) to become the most valuable company in the world, just two weeks after claiming the No. 2 spot from Apple (AAPL), reported Yahoo News.
On Tuesday, Nvidia’s stock price rose nearly 4%, reaching over $136 per share, and giving the chipmaker a market capitalization of over $3.35 trillion, the report said. Meanwhile, Microsoft saw a 0.3% decline, resulting in a market cap of $3.32 trillion.
Nvidia’s stock has skyrocketed over the last 12 months, gaining more than 215%. Over the past five years, it has surged more than 3,400%. Year-to-date, Nvidia has gained 175%, while Microsoft has seen an increase of just under 19% in 2024.
Nvidia first crossed the $1 trillion market cap mark on June 13, 2023. The company quickly advanced to over $2 trillion on March 1, 2024, and then surpassed the $3 trillion mark for the first time on June 5, 2024, marking the fastest ascent from $1 trillion to $3 trillion on record.
This surge has made Nvidia a top weighting in the S&P 500 (^GSPC), playing a crucial role in the benchmark index hitting record highs in 2024. Up until May, the S&P 500 showed a near-perfect correlation with Nvidia’s price movements. As of Monday, Nvidia’s stock gains alone had contributed about one-third of the S&P 500’s year-to-date rise, according to Citi’s equity research team.
Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia is an American multinational technology company headquartered in Santa Clara, California. Known for its graphics processing units (GPUs), Nvidia has diversified its portfolio to include products and services for gaming, professional visualization, data centers, and automotive markets.
Nvidia’s flagship GeForce series of GPUs has revolutionized the gaming industry, providing unmatched performance and visual quality. These GPUs are also key in powering high-performance computing (HPC) and artificial intelligence (AI) applications, driving advancements in deep learning, scientific research, and big data analytics.
Nvidia’s CUDA parallel computing platform and programming model enable developers to utilize GPUs for general-purpose processing, spurring innovation across various sectors. Its AI frameworks, such as TensorRT and NVIDIA Triton, are crucial for deploying AI models in production environments.
Strategically, Nvidia has made several key acquisitions to enhance its capabilities and market reach. The acquisition of Mellanox Technologies in 2019 strengthened Nvidia’s data center offerings, while the pending acquisition of ARM Holdings aims to create a comprehensive ecosystem spanning cloud, edge, and IoT devices.
Nvidia’s robust financial performance is driven by consistent revenue growth from its GPUs and AI platforms, with revenues of $26.9 billion reported for the fiscal year 2023.
Looking ahead, Nvidia continues to focus on pioneering technologies in AI, HPC, and next-generation gaming. The development of the NVIDIA Omniverse platform for collaborative 3D simulation and design underscores the company’s commitment to innovation. As AI and machine learning applications continue to expand, Nvidia’s GPUs and software solutions are expected to play a critical role in shaping the future of technology.
In summary, Nvidia stands at the forefront of technological innovation, pushing the boundaries with its cutting-edge hardware and software solutions. Its strategic vision and relentless pursuit of excellence position it as a key enabler of the digital age.
