Nvidia CEO, Jensen Huang, is feted as a visionary for a new era of innovation driven by generative AI tools like ChatGPT.
Nvidia achieved a monumental milestone, surpassing Microsoft to become the world's most valuable publicly traded company, showcasing its leading position in the tech industry.
Nvidia's stock soared nearly $5, or 3.7%, reaching $135.77. This increase valued the AI chip giant at a staggering $3.33 trillion, outpacing Microsoft's $3.31 trillion and Apple's $3.29 trillion. This feat is even more impressive considering that just a year ago, Nvidia's market capitalization had only recently surpassed the $1 trillion mark.
The company’s stock has skyrocketed by more than 174% this year alone. Earlier this month, Nvidia’s shares were trading above $1,200 before the company executed a 10-for-1 stock split on June 7, aimed at making its shares more accessible to investors.
While Microsoft and Apple's growth are tied to earlier technological advancements, Nvidia's meteoric rise is driven by the increasing demand for its AI chips. These chips are essential for the significant investments corporations are making in AI technologies and data centers. Nvidia's annual revenue, which was $11 billion in 2020, now exceeds twice that amount in a single quarter, reflecting the company's rapid growth and profitability.
Jensen Huang, Nvidia’s founder and CEO, often seen in his signature leather jacket, is celebrated as a visionary leading the charge into a new era of AI-driven innovation. Under his leadership, Nvidia has become a powerhouse in graphics processing, cloud services, and high-performance computing. The company is also expanding its influence into emerging fields like robotics and autonomous vehicles.
Nvidia's success has also had a ripple effect on the broader market. The company’s achievement helped propel the S&P 500 to a new record high, as investors flock to companies poised to benefit from the AI boom.
"We've been anticipating this moment for quite some time," said Angelo Zino of financial intelligence firm CFRA. "The semiconductor industry is now the largest sub-industry in the S&P 500."
Nvidia's rise reflects the growing importance of semiconductors in today's tech landscape. As AI continues to evolve, Nvidia's leadership and innovative products are set to keep the company at the forefront of this dynamic and rapidly expanding industry.
