Nvidia (NVDA.O) has become the world’s most valuable company, surpassing Microsoft (MSFT.O) with a market capitalization of $3.335 trillion. Nvidia’s shares climbed 3.5% to $135.58 on June 18, driven by the booming demand for its AI chips. This feat comes just days after the company overtook Apple (AAPL.O) to become the second most valuable company. Microsoft’s market value now stands at $3.32 trillion after a 0.45% dip, while Apple’s value is $3.29 trillion following a 1.1% drop.

Nvidia’s rise has been meteoric, with its stock up nearly 182% this year and more than ninefold since the end of 2022, fueled by the surge in generative artificial intelligence. The company’s GPUs are crucial for AI development, dominating about 80% of the market for AI chips used in data centers. This dominance has propelled Nvidia’s revenue in the data center business to $22.6 billion, accounting for about 86% of its total sales. Since its stock market debut in 1999, Nvidia shares have skyrocketed 591,078%, turning a $10,000 investment into $59,107,800 today.

Founded as a niche player in the gaming community, Nvidia has transformed into a central figure in the tech industry. Under CEO Jensen Huang’s leadership, the company pivoted in the 2000s to develop GPUs for broader applications beyond gaming, setting the stage for its current AI boom. Despite its rapid ascent, Nvidia has yet to be added to the Dow Jones Industrial Average. To appeal to individual investors, Nvidia recently executed a 10-for-1 stock split. The company’s stunning growth has also elevated Huang’s net worth to over $117 billion, making him one of the world’s richest individuals.

References:

CNBC Nvidia passes Microsoft in market cap to become most valuable public company

Reuters Nvidia eclipses Microsoft as world’s most valuable company

Aljazeera Nvidia becomes world’s most valuable company, dethroning Microsoft