Nvidia has seen another market surge to become the world’s most valuable company, surpassing many of its key rivals once again.
The company, which has become synonymous with building components designed to power the data centers behind the AI push, now has a market cap of $3.335 trillion, putting it just a touch ahead of Microsoft, current second-place holder, and Apple, which resides in third place.
Nvidia’s latest success of taking prime position comes in the same month that the company became the third in the world to hit a market cap of $3 trillion.
Nvidia takes top spot
Since hitting the $3 trillion mark almost a year ago, Apple’s growth has stagnated somewhat, with the company interchangeably occupying first and second place with Microsoft, each representing a market cap around $1 trillion more than Google, which was typically a third-place holder.
Recent months have seen share prices in Nvidia skyrocket – since the start of the calendar year, they’re up 181%. Nvidia share prices have gone through the roof in the past five years, up 3,477%.
In the most recent quarter, Nvidia’s data center revenue surged 427% year-over-year to $22.6 billion, comprising around 86% of the company’s total sales. Major tech companies like OpenAI, Microsoft, Alphabet, Amazon and Meta, which are already battling it out to push their market caps to new limits, have invested heavily in Nvidia’s processors to build and run large AI models.
CEO Jensen Huang, who holds a 3% share in Nvidia, is now estimated to be worth around $118.7 billion, making him the 11th wealthiest individual on the planet, sitting two places behind ex-Microsoft CEO Bill Gates.
Despite its initial beginnings in the gaming industry, Nvidia’s dominance in the AI market highlights the impact of artificial intelligence both within the tech sector and on the global economy.
While Nvidia’s growth in recent months has been mightily impressive, finance experts are beginning to wonder whether the company will be able to sustain its upward trajectory for much further. With the previous $3 trillion glass ceiling already smashed, might Nvidia be the first company to hit a $4 trillion market cap?
