Record-Breaking Stock Performance Propels Nvidia to the Top
In a remarkable turn of events, Nvidia has claimed the title of the world’s most valuable public company, narrowly surpassing Microsoft’s market capitalisation. This milestone comes shortly after Nvidia outpaced Apple, driven by a surge in stock gains over recent months.
Key Highlights
- Stock Surge: Nvidia’s shares rose over 3% on Tuesday afternoon, reaching approximately $135.65, while Microsoft’s shares saw a slight dip to $447.58.
- Market Capitalisation: These stock movements elevated Nvidia’s market cap to $3.33 trillion, just edging out Microsoft’s $3.32 trillion.
- Stock Split Impact: Following a recent stock split, which adjusted Nvidia’s share price from $1,210 to about $120, the company’s stock has climbed roughly 12%.
- Start of the Year: Nvidia began the year with a market value of $1.2 trillion, less than half that of Microsoft and Apple at the time.
Impressive Growth
- 177% Increase: Since the beginning of the year, Nvidia’s market cap has skyrocketed by 177%, with shares initially trading at $48.17 (post-split).
Nvidia’s Leadership and Market Influence
- CEO’s Net Worth: Forbes estimates Nvidia CEO Jensen Huang’s net worth at $118.8 billion, positioning him as the 11th-richest person globally—a personal record.
The AI Boom and Nvidia’s Dominance
- AI Revolution: Nvidia’s ascent is closely tied to the ongoing artificial intelligence boom, which has significantly boosted the demand for its chips and graphics processing units (GPUs). Major tech players like Microsoft, Meta, Amazon, and Alphabet heavily rely on Nvidia’s technology.
- Market Share: According to Misuho Securities, Nvidia controls between 70% and 95% of the AI chip market. Bloomberg’s supply chain data suggests that Microsoft alone accounts for 15% of Nvidia’s revenue.
- Future Outlook: Nvidia reported a net income of $8.4 billion for its 2023 fiscal year. Analysts predict this figure could surpass Apple’s net income within the next four years, indicating sustained growth potential.
Further Insights
- Stock Trading Post-Split: Nvidia shares are currently trading at around $120 following the stock split, reflecting the company’s robust performance.
- Market Cap Milestone: Nvidia recently surpassed Apple’s market cap, becoming the world’s second most valuable company before taking the top spot from Microsoft.
Conclusion
Nvidia’s rapid rise to become the world’s most valuable company underscores its pivotal role in the AI sector and the broader tech industry. As the company continues to innovate and expand its market presence, it sets a new benchmark for growth and valuation in the technology landscape.
