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Nvidia has passed Microsoft and Apple to become the world's most valuable company, becoming only the 12th company to ever do so.
Nvidia has been on a spectacular rise ever since the beginning of the artificial intelligence boom a couple of years ago, and they have gone through one of the quickest rises in market cap since the dot-com boom of 1999 with technology company Cisco. Just two years ago, Nvidia's market cap was $400 billion, while it now stands at over $3 trillion.
This comes after years of stellar growth from Nvidia, which has been considered the 'darling of the AI industry' right now. CEO Jensen Huang explained how he anticipated a rise in AI in 2022, so he realized that Nvidia would boom soon. Earlier, the company only produced Graphics Processing Units (GPUs), which are primarily used for gaming devices like Xbox and Playstation, while they now produce mostly computer chips and software for artificial intelligence.
Almost every big tech company uses their chips, including Amazon, Microsoft, Oracle, Google, Meta, and more. These companies may be competing against each other in the AI race, but Nvidia is the one powering both sides of the battle. OpenAI, the creator of the first-of-its-kind chatbot ChatGPT, also used Nvidia chips to create the system.
One year ago, Nvidia's first quarter earnings reported a revenue of $7.2 billion, and their 2024 Q1 earnings reported $26 billion in revenue. Its stock has tripled in 2024 alone-- less than two years ago, its stock price was $120, and it came up to a staggering $1,200 before the company's 10-for-1 stock split last week. From another perspective, 12 months ago, Nvidia's market cap was at $1 trillion. In just 9 months, it shot up to $2 trillion, and it only took another 3 months for the market cap to reach an astonishing $3 trillion.
Microsoft and Apple have been fighting for the title of world's most valuable company for a while now, but Microsoft's latest announcement of the integration of AI into Windows had taken them to the top. However, after Apple's WWDC event where they announced the arrival of Apple Intelligence, the two companies became neck-and-neck this week.
However, after a 3.51% rise on Wednesday, Nvidia powered ahead of both tech companies to end the trading day with a market cap of $3.335 trillion, while Microsoft sat in second with $3.317 trillion and Apple in third with $3.285 trillion. Only six companies have held the title since 2001 after the dot-com boom: General Electric, Exxon Mobil, Amazon, Apple, Microsoft, and now, Nvidia.
The massive demand for AI is still growing, and some investors expect Nvidia's market cap to reach $5 trillion in the next few years, with a couple of bullish estimates even expecting $10 trillion. After the recent announcement of Nvidia's new Blackwell AI chips, which will sell at around $30,000 to $40,000 apiece, its stock boom is sure to keep going. In addition, Jensen Huang announced that they would start releasing new AI chips every single year, contrary to the company's previous two-year interval before the announcement of a new chip.
Fact of the Day (Reader's Digest): The world's first-ever novel is called the Tale of Genji, and it actually ends mid-sentence. After 54 intriguing chapters, the book ends halfway through a sentence. Some researchers say that it's supposed to end that way, while others say that there are some missing pages.
Quote of the Day (Gracious Quotes): Work hard. Work smart. Perseverance is everything. It allows you to create and do things you wouldn’t otherwise think you could achieve. (Micky Watkins)
Word of the Day (Merriam-Webster): Brainiac (noun) - A brainiac is a very intelligent person.
In a Sentence: Her ability to solve almost any puzzle within minutes secured her place as the brainiac of the family.
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