Nvidia became the world’s most valuable company, surpassing Microsoft just two weeks after surpassing Apple. Behind this success lies the production of chips that are of vital importance, especially in the development of artificial intelligence technology.
The stock price rose to $135.58 at Tuesday’s close, an increase of $4.60 from the previous day. This increase brought the company’s market value to $3.335 trillion, surpassing Nvidia, Microsoft ($3.32 trillion), Apple ($3.29 trillion) and Google ($2.17 trillion). Although Nvidia’s stock split 10-to-1 after June 7, reducing its share price, the company’s overall value increased rapidly. The share price increased by 160% in 2024, and the company exceeded the $2 trillion mark in February.
The key to Nvidia’s rise: Artificial intelligence technology
In its last earnings report published in May, Nvidia announced that it had generated over $26 billion in revenue. This success will be further consolidated with the new Blackwell GPU architecture, which is expected to be released later in the year. The company’s CEO, Jensen Huang, said the Blackwell units have been described as “the most powerful chip in the world” and each unit will cost between $30,000 and $40,000. Additionally, Nvidia plans to release new AI chips every year.
This rapid rise of Nvidia is directly related to the increasing importance of artificial intelligence technologies and the fact that Nvidia chips play a critical role in the development of these technologies. The company’s future growth expectations are further strengthened by the increase in artificial intelligence applications and the rise in demand for the chips used in these applications.
Meanwhile, this rapid increase in Nvidia’s market value and share prices continues to attract the attention of investors and technology industry analysts. All these developments once again reveal what an important player Nvidia is in both the technology world and the financial market.
Nvidia’s leadership in artificial intelligence technologies and its success in chip production have made the company the most valuable company in the world. This situation also reveals Nvidia’s future potential.