On Tuesday, Nvidia became the most valuable public company, overtaking heavyweight Microsoft. Nvidia is pushing towards the sky on the back of chips being at the center of the artificial intelligence boom in recent years.
Shares of the company climbed up 3.5% to $135.58 and it led to the market cap pushing to $3.34 trillion. This means that Nvidia passed Microsoft to become the most valuable company in the world now. This comes just days after Nvidia overtook Apple to become the second most valuable company in the world.
So far in 2024, the share prices of the company increased by 170%, a huge bump in prices after a positive first-quarter report earlier in the year. The stocks of the company multiplied manifold since the end of 2022. This increase in the share price of Nvidia directly coincides with the spike in generative AI popularity.
Currently, Nvidia controls about 80% of the AI chips market that are used in data centers. These chips are an essential component for companies like OpenAI, Microsoft, Alphabet, Meta, Amazon, and others.
In the first quarter results, the company reported that the revenue in the Nvidia data center business rose 427% from a year earlier. This accounted for about 86% of the total sales of the company.
The AI boom has reshuffled the biggest companies in the world by market cap, and now a new leader is at the top.
The growth of the company outpaced other hot tech companies in the space and that is one of the reasons why Nvidia is at the top.
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