As the trading day came to a close yesterday, Nvidia’s stock price increased 3.6%, bringing the company’s market valuation to $3.34 trillion. The semiconductor manufacturer is now the biggest publicly traded company in the world, surpassing Microsoft ($3.32 trillion).
The surge in generative AI and the increasing demand for AI chips are driving up Nvidia’s market value. More than 1,100% since their low in October 2022, the stock price of the company has increased by more than 170% this year.
The company’s capitalization increased from $2 trillion to $3 trillion in just 96 days. It took 945 days for Microsoft and 1,044 for Apple to turn around. The semiconductor manufacturer has achieved a return of 591,078% when dividends are reinvested since its initial public offering in 1999.
For the first time in history, Nvidia surpassed all other publicly traded companies in terms of size. Apple and Microsoft have taken turns being named champions in recent years. Almost all of the world’s custom AI chips are now made by Nvidia. New artificial intelligence chips were unveiled in June by the corporation.
In the last quarter of 2023, Nvidia’s earnings were higher than expected. More than $2 billion more than what experts had predicted, the total came to $22.1 billion.
The artificial intelligence (AI) startup Run:ai, which aids operations teams and developers in managing and optimizing AI infrastructure, was acquired by Nvidia in April 2024.
An AI model for on-demand 3D object generation was previously showcased by the company.
In June, Apple announced a large-scale initiative called Apple Intelligence to develop generative AI. They also integrated ChatGPT into Siri and other services in iOS, iPadOS, and macOS. Let’s not forget about that.