Nvidia becomes the world’s most valuable company

Nvidia surpasses Apple and Microsoft to become the most valuable corporation in the world when its market capitalization hits $3.34 trillion.

The business that creates and produces AI-based semiconductors, Nvidia, has shocked everyone by becoming the most valuable company in the world.

Nobody could have predicted that this company would rise to the top of the global valuation charts six months ago. Its market capitalization hit $3.34 trillion on June 18. This year, its shares have increased by an astounding 181% since January.

On January 2, 2024, it was valued at $48. As of June 18, it is now worth $135.58. This implies that the investor’s money from January 2, 2024, has grown by more than 2.5 times. For a corporation this size, this is not an easy task. This indicates that the firm is strong and that it is a reliable bet.

Left the market cap race with everyone behind

Nvidia won the quest for market share by first defeating Amazon, the parent company of Google, then Meta, the company that runs Facebook. Nobody anticipated that it would overtake Apple and Microsoft, but on June 18, that is exactly what happened. Within the last month, this stock has dropped by nearly 45%. The founding father of Nvidia, Jensen Huang, made history on June 18.

The founders and work of Nvidia

Jenson Huang is Nvidia’s founder. This company was founded by him in 1993. Despite having founded the business, his ownership stake is barely 3.5%. His current net worth is estimated to be 64 billion dollars.

In contrast to Microsoft shares, which have increased by roughly 19% this year, Nvidia’s share price has nearly tripled thus far.

Nvidia’s 10-for-1 stock split last week made its highly valued shares more appealing to individual investors.

This firm used to exclusively manufacture graphics chips for video games, but eventually it decided to start producing AI-based chips and invested a lot of money in R&D. With an R&D investment of roughly $10 billion, the business introduced the world’s first AI-based semiconductor, and today it is the biggest manufacturer of AI-based chips. Chips from this company are utilized in cloud computing and cryptocurrency mining, among other applications. Nvidia provides semiconductors that are used by companies such as Amazon, Microsoft, and Google for their cloud operations.

The Nasdaq and S&P 500 reached all-time highs along with the Nvidia stock price rise. Based on LSEG data, Nvidia has emerged as the most traded business on Wall Street, with an average daily turnover of $50 billion, compared to roughly $10 billion for Apple, Microsoft, and Tesla. Currently, the chip manufacturer represents roughly 16% of total S&P 500 company trading.

About Nvidia.

With its headquarters located in Santa Clara, California, and its incorporation date of Delaware, Nvidia Corporation is an American global corporation and technology company. This software and fabless firm creates and provides system on a chip (SoC) for mobile computing and the automotive industry, graphics processing units (GPUs), and application programming interfaces (APIs) for data science and high-performance computing. Additionally, Nvidia is a leading provider of software and hardware for artificial intelligence (AI).

Professional GPUs from Nvidia are utilized in edge-to-cloud computing, as well as in workstations and supercomputers for applications in media and entertainment, scientific research, manufacturing design, architecture, engineering, and construction. Video editing, 3D rendering, and PC gaming are just a few of the uses for its consumer-oriented GeForce series of GPUs. When it came to discrete desktop GPUs, Nvidia held a market share of 80.2% in the second quarter of 2023. With the release of the Shield Portable, a handheld game console, Shield Tablet, a gaming tablet, and Shield TV, a digital media player, in addition to its cloud gaming service GeForce Now, the firm increased its footprint in the gaming market.

Apart from designing and producing GPUs, it also offers the CUDA software platform and API, which facilitates the development of massively parallel programs that make use of GPUs. They are installed in global supercomputing facilities. it entered the mobile computing space in the late 2000s, producing Tegra mobile processors for tablets and smartphones in addition to car entertainment and navigation systems. AMD, Intel, Qualcomm, and AI accelerator firms like Cerebras and Graphcore are some of its rivals. It produces AI-driven audio and video processing tools, like Nvidia Maxine.

After extensive regulatory review, in September 2020 offer to buy Arm from SoftBank fell through, and the deal—which would have been the largest semiconductor acquisition—was terminated in February 2022. Nvidia became the seventh publicly traded American business to be valued at more than $1 trillion in 2023, and since then, as the company established itself as a pioneer in AI-capable data center chips, its valuation has increased dramatically. With a market valuation of more than $3.3 trillion, Nvidia surpassed Microsoft to become the most expensive publicly traded business in the world in June 2024.

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