Nvidia became the world’s most valuable company on Tuesday. The stock of the Taiwanese chipmaker jumped 3.6%, reaching a market cap of $3.34 billion and surpassing Microsoft and Apple.
Nvidia’s stock price has surged by 170% in 2024 alone, thanks to a strong first-quarter report earlier this year. Since the end of 2022, its stock has increased ninefold, driven by the rising popularity of generative AI.
According to CNBC, Nvidia controls about 80% of the market for AI chips used in data centers, which are crucial for companies like OpenAI, Microsoft, Alphabet, Amazon, Meta, and others.
Their latest quarterly report showed a 427% increase in revenue from their data center business compared to last year, making up about 86% of their total sales.
Nvidia is best known for its graphics cards and chips gamers use to play the latest video games. Although the company has tried selling cryptocurrency mining chips and cloud gaming subscriptions, it has now found its niche in the AI industry.
According to Forbes, Nvidia co-founder and CEO Jensen Huang is now the 11th wealthiest person in the world, with a net worth of $117 billion.
