Microchip company Nvidia surpassed Microsoft and Apple in market value, reaching a total of $3.34 trillion. This makes it the most valuable company in the world today. Its stock market price increased by 3.7%, one hour before the market closed on June 18, 2024.
One of the keys to understanding Nvidia’s success is its presence in the artificial intelligence hardware market. Proof of this is its partnership with OpenAI, the company behind the popular chatbot ChatGPT.
Microsoft fell to second place with a capitalization of $3.31 trillion, and its stock price declined by 0.52%. Apple ranked third, with a capitalization of $3.284 trillion, and its shares were down 0.83%.
Why Nvidia is now the most valuable company in the world
Nvidia reported revenue of $26 billion for the first quarter ended April 28, 2024.
According to the same report, Nvidia’s data center segment achieved record quarterly revenue of $22.6 billion, an increase of 23% compared to the fourth quarter of 2023. These figures show the growing demand for data center infrastructure for AI applications and other advanced technologies.
According to The Wall Street Journal, Nvidia currently controls between 70% and 90% of the market in this industry, with a 400% increase in its profits in 2023 compared to the previous year.
What are the latest Nvidia products?
When Nvidia was positioned as the second most valuable company, Jensen Huang, its CEO, was in Taipei, Taiwan presenting the company’s latest developments.
Huang revealed that Nvidia was developing Rubin AI, a new architecture for AI systems that would be released in 2026. The platform was designed to meet the computational processing demands of small businesses and home users.
The company’s CEO pointed out that the amount of data to be processed is increasing rapidly and that conventional computational models are becoming obsolete.
“Generative AI is reshaping industries and opening up new opportunities for innovation and growth,” Huang said at the event.
On the other hand, Nvidia has developed special supercomputers with artificial intelligence that are highly requested by companies.
Recently, Huang handed over DGX H200 to Sam Altman and Greg Brockman, executives at OpenAI. Nvidia claims that this AI supercomputer is unique in its ample memory space, allowing it to store large volumes of data to improve the speed and accuracy of AI systems like ChatGPT in responding to user requests.
“The next industrial revolution has begun: companies and countries are partnering with Nvidia to shift from traditional trillion-dollar data centers to accelerated computing and build a new type of data center to produce a new product: artificial intelligence,” Huang said in the quarterly report mentioned above.
Jensen Huang, a key figure in Nvidia’s growth
Nvidia’s success could be attributed to the leadership of Jensen Huang, who has been recognized by his employees as a remarkable leader.
According to a 2023 Blind survey on CEO approval, Huang earned the highest approval rating. Nearly all of Nvidia’s verified professionals on Blind (96%) endorsed his performance as CEO.
Blind, a social platform for professionals, conducted this survey anonymously among employees of 104 technology companies.
Nvidia was established in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, who combined their engineering and technology skills to develop graphics processors and AI technology.
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