Nvidia has ascended to the pinnacle of the global stock market, now recognized as the most valuable company in the world with its market capitalization soaring over $3.3 trillion. The surge in Nvidia’s share price to upwards of $135 has been fueled by its unparalleled dominance in the artificial intelligence (AI) chip market, a sector experiencing exponential growth. Analysts, including Daniel Ives of Wedbush Securities, have likened Nvidia’s GPU chips to ‘the new oil’ in the tech industry, as the company races towards a $4 trillion market value alongside tech giants Apple and Microsoft. The stock has seen a remarkable 173% increase since the beginning of 2024, a testament to the demand for Nvidia’s high-end processors and the strategic role its chips play in powering AI applications across various industries. With significant revenue growth, particularly in its Data Center business, Nvidia’s financial performance has been stellar, posting a 427% year-over-year increase to $22.6 billion, representing 86% of its total revenue. The company’s stock split earlier this month has only added to its allure, making shares more accessible to individual investors and further stoking demand. Nvidia’s trajectory has been marked by strategic moves, including the donation of a supercomputer to OpenAI in 2016, showcasing its commitment to AI development and setting the stage for its current market supremacy.
Key points
- Nvidia’s market value has eclipsed $3.
- The company’s dominance in the AI chip market has driven its stock price over $135, with a 173% increase in 2024.
- Analysts compare Nvidia’s GPUs to ‘the new oil’, as the company is anticipated to reach $4 trillion in market value.
3 trillion, making it the most valuable company globally.
