Anindita Nayak
Bhubaneswar, 19 June 2024
Nvidia Corp has surged ahead of Apple and Microsoft to secure the title of the world’s most valuable company on the back of rising demand for AI-powered chips.
Nvidia Corp’s rapid rise has pushed the chipmaker to the top of the global tech market, surpassing Apple and Microsoft.
Nvidia’s shares jumped up to 3.4% on Tuesday, pushing its market value higher than Microsoft and Apple. Nvidia’s journey to the top has been driven by strong growth in revenue powered by AI technology. In 2024, the company’s stock has skyrocketed by over 160%, increasing its market capitalization by more than $2 trillion.
Earlier this month, Nvidia became more valuable than Apple for the first time in over twenty years. The chip maker is viewed as the largest and earliest gainer from this technology, leading the market with its popular chips used in data centers for complex computing tasks in AI applications. The demand for its H100 accelerators is rising, contributing to a sales increase of over 125% for the chip maker last year.
Microsoft has been recognized as an early leader in AI, thanks to its investment and collaboration with OpenAI, the creator of ChatGPT. Apple, on the other hand, has only recently revealed its AI strategy, which boosted its stock.
In Nvidia’s latest fiscal quarter, the company reported revenue of $26 billion, which was more than three times the $7.2 billion it earned in the same period last year. Analysts anticipate Nvidia to generate revenue of $117 billion in fiscal 2025, nearly doubling its revenue from 2024 and more than quadrupling its earnings from the previous year.
The demand for Nvidia’s chips, which are used in AI-powered solutions, has skyrocketed in recent years as technology giants bet big on AI space. As a result, the company’s revenue more than tripled in the latest quarter compared to a year ago.
