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Nvidia has Surpassed Microsoft to Become the World’s Most Valuable Company

Chip maker Nvidia reached an all-time high in its share price on Tuesday, making it the most valuable corporation in the world. Its current value is $3.34 trillion (£2.63 trillion), having nearly doubled in value from the year’s beginning. With a 3.5% gain, the stock closed the trading day at about $136, making it more valuable than Microsoft, another massive IT company. Earlier last month, it passed Apple. Its dominance of what some refer to as the “new gold or oil in the tech sector”, the processors required for artificial intelligence (AI) has propelled the Californian Company’s explosive growth.

Speaking at a gathering in Copenhagen, Nvidia’s global head of business development for telco, Chris Penrose, forecasted additional expansion in the industry. He declared, “The generative AI journey is really transforming telcos and businesses around the world.” “This is only the beginning.” Wedbush Securities analysts concurred. It stated in a note earlier this week, “We believe over the next year the race to the $4 trillion market cap in tech will be front and center between Nvidia, Apple, and Microsoft.” However, considering the growing competition Nvidia faces, some analysts have questioned whether there will be significant future advances.

Rise and rise:

The fact that it has grown so phenomenally is undeniable. The stock was only worth 1% of what it is now, eight years ago. In the past, Nvidia’s competitive advantage over AMD stemmed from their quest to produce the finest graphics cards. However, it has profited recently from a surge in demand for processors that execute and train generative AI models, the most well-known of which is ChatGPT from OpenAI. Additionally, the company benefited greatly from a spike in sales of its graphics cards in 2020 due to the rush to mine Bitcoin. The rise in prominence of Jensen Huang, the company’s boss, has coincided with the growth of the tech powerhouse.

Because of his rise to fame, the 61-year-old electrical engineer who is well-known for donning a leather jacket—has been dubbed the “Taylor Swift of tech” by Meta CEO Mark Zuckerberg. His popularity in his home Taiwan, where fans treat him like a rock star by posing for pictures and even asking him to autograph body parts, has contributed to his rise to fame.

There is a lot of competition among AI developers. Tech giants like Apple, Microsoft, Alphabet, which owns Google, and Meta are just a few of those competing to produce a product that can compete globally. Nvidia, which leads the great majority of the AI chip market and is also developing AI technology of its own, gains from this competition.

In recent years, Nvidia’s sales and earnings figures have exceeded the predictions of numerous analysts. Ben Barringer, a technology analyst at Quilter Cheviot, stated in May that the company had “once again cleared a very high hurdle” following the release of its most recent set of financial data. “Demand is showing no signs of switching off either,” he stated. Some people are more circumspect, though. Sandeep Gupta, a credit analyst at Barclays, stated in February that Nvidia’s substantial market share would be difficult to sustain in light of the growing number of competitors and questioned how Nvidia’s clients would profit from AI software.

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