What you need to know
- NVIDIA recently surpassed Microsoft and Apple to become the world’s most valuable company.
- Its market share price hit an all-time high, pushing its market valuation to $3.335 trillion on Tuesday.
- The change in the chipmaker’s market capitalization can be attributed to the increasing demand for AI chips.
Every major tech corporation dabbling with AI is seemingly fighting for the world’s most valuable company crown. Microsoft and Apple have been contending for the position over the past few months, with the former having the upper hand most times.
Market analysts attribute Microsoft’s success in the AI landscape to its early multi-billion dollar investment in OpenAI and adoption across its products and services. Apple recently surpassed Microsoft and became the world’s most valuable company after announcing its AI strategy with Apple Intelligence as its headliner.
Interestingly, NVIDIA is now the world’s most valuable company, ahead of Microsoft and Apple. On Tuesday, the chipmaker’s market share price rose to an all-time high, pushing its market valuation to $3.335 trillion.
NVIDIA’s rise to the top doesn’t come as a surprise. In early June, the company became the second-most valuable company in the world ahead of Apple, and was just a few hundred million dollars behind Microsoft.
NVIDIA could maintain its position with the high demand for AI chips
Major companies like Microsoft, OpenAI, and even Meta are heavily dependent on NVIDIA for GPUs to foster their AI advances. At some point, the chipmaker was unable to supply the high demand for AI chips.
Recent developments indicated Microsoft and OpenAI invested over $100 billion in a project dubbed Stargate. If everything goes according to plan, both companies could potentially free themselves from an overreliance on NVIDIA for AI chips.
NVIDIA is undoubtedly on a wining streak with AI. Last year, NVIDIA was named the most profitable semiconductor chip brand in the world, with Microsoft and Meta as its A-list clients. Its revenue for Q3 2023 stood at $18.12 billion, with $10.42 billion in profits. Figuratively, this translated to a 206% year-over-year increase due to the high demand for AI chips.
