Nvidia has overtaken Microsoft to claim the title of the world’s most valuable publicly traded company by market capitalization. The chipmaker’s market value surged to approximately $3.34 trillion, surpassing Microsoft’s $3.32 trillion, as its shares rose over 3% during trading.
This milestone highlights Nvidia’s rapid ascent fueled by the booming demand for its advanced graphics processing units (GPUs), which are critical for powering artificial intelligence (AI) applications. Nvidia controls about 80% of the AI chip market used in data centers, serving major tech firms including Microsoft, Meta, and Google.
Nvidia’s stock has experienced an extraordinary rally, more than doubling in value this year and rising over 1,100% since late 2022. The company’s AI-driven growth has propelled its revenue and earnings, with recent quarterly data showing a 427% year-over-year increase in data center revenue to $22.6 billion, representing the majority of total sales.
Microsoft remains a significant player in AI, heavily investing in AI infrastructure and integrating Nvidia’s GPUs into its Azure cloud services. However, Nvidia’s dominant position in the AI hardware market has driven its valuation above Microsoft and Apple, the latter of which Nvidia also surpassed recently.
Nvidia’s CEO Jensen Huang has seen his net worth soar alongside the company’s rise, reflecting the firm’s transformation from a gaming chip producer to a leader in the AI revolution. Founded in 1991, Nvidia’s strategic pivot to AI chips has reshaped its market standing and investor sentiment.
The chipmaker’s inclusion in major stock indices and its recent 10-for-1 stock split may further enhance its market presence. Analysts remain bullish on Nvidia’s outlook, expecting continued growth driven by AI adoption and seasonal market trends.
This development marks a significant shift in the tech landscape, with Nvidia now at the forefront of the AI-driven market capitalization race, redefining the hierarchy among the world’s largest corporations.