Nvidia Market Cap At $3.45 trillion, Surpasses Microsoft To Become World’s Most Valuable Company
The growth of the company is majorly boosted by its AI chips being used by several companies around the world, including OpenAI, the owner of ChatGPT.
Nvidia has once again emerged as the most valuable publicly traded company around the world after surpassing Microsoft in market capitalisation on Tuesday, June 3.
The US chipmaker's shares jumped nearly 3% to reach $141.4 apiece on Tuesday. In the past month, shares of the company have rallied around 24%, despite tariff concerns and export control, CNBC reported.
Nvidia’s market capitalisation stood at $3.45 trillion, leaving behind Microsoft ($3.44 trillion market cap) with a narrow margin.
This comes after the company posted $44.06 billion in sales and 96 cents in adjusted earnings per share in its fiscal first quarter. It represented a 69% growth year-on-year, which is incredible for a company of its size.
The growth of the company is majorly boosted by its AI chips being used by several companies around the world, including OpenAI, the owner of ChatGPT. Also, its AI accelerators are being purchased in large quantities by big names like Microsoft, Google, Amazon, Oracle, Meta and xAI. Large amount of money is being used to come up with clusters of computers for advanced AI work.
Founded in 1993, Nvidia initially targeted producing chips to play 3D games. In recent times, it has emerged itself as a key player in the AI revolution.
Recently, Nvidia CEO Jensen Huang soothed investor fears over the China slowdown and delivered a strong sales forecast. He stated that the AI computing market is still poised for “exponential growth,” according to Bloomberg.
The AI chip giant is now hoping for a revenue of nearly $45 billion in the second fiscal quarter that runs through July.
As per reports, the latest export restrictions could cost Nvidia around $8 billion in Chinese revenue during the period. However, the forecast still meets the estimates of analysts.
Nvidia has ramped up production for the latest semiconductor design, Blackwell.
Nvidia boasts an ever-broader lineup of hardware and software that allows it to sell more products to customers. It even offers its chips as part of whole computer systems and is expecting AI infrastructure to eventually transform economies worldwide.
The company presently accounts for roughly 90% of the market for AI accelerator chips -- an area that has proven to be extremely lucrative for it. This fiscal year, the company is aiming to reach $200 billion in annual sales, which will be up from $27 billion two years ago.
