Nvidia, an American company known for making computer chips crucial for artificial intelligence (AI) software, has claimed the title of the world’s most valuable company. This achievement came after its share price reached an all-time high on Tuesday.
The demand for Nvidia’s products, which are essential for AI development, has significantly boosted its sales and profits in recent years. Investors have shown confidence in Nvidia’s potential for further earnings growth, leading to a substantial rise in its share price. However, some have raised concerns about its high valuation.
At the close of trading, Nvidia’s stock reached nearly $136, marking a 3.5 percent increase. With this surge, the company’s market value soared to $3.34 trillion, nearly doubling since the beginning of the year. Just eight years ago, Nvidia’s stock was worth less than 1 percent of its current price.
Nvidia dominates the AI chip market, holding an impressive 88 percent share of the dedicated Graphics Processing Unit (GPU) market, according to Jon Peddie Research for Q1 2024. This dominance positions Nvidia as a leader in providing GPUs for gaming and other demanding graphical applications.
In fiscal year 2024, Nvidia reported annual revenue of $60.9 billion, marking a significant increase compared to previous years.
Jensen Huang, Nvidia’s charismatic chief executive, has gained celebrity status in the tech industry, often likened to Taylor Swift for his passionate presentations and influential leadership. Huang’s net worth increased by over $4 billion in a single day, making him the 11th-richest person globally, according to Forbes’ real-time billionaire list.
Since co-founding Nvidia in 1993 and leading it through its public offering in 1999, Huang has steered the company to the forefront of technological advancements, particularly in AI-powered computing.
