Nvidia became the most valuable company in the world on Tuesday. Shares of the Taiwanese chipmaker rose 3.6% to a total market capitalization of $3.34 billion, surpassing Microsoft and Apple.
The company has increased its stock price by 170% so far in 2024, a big increase that followed a positive first-quarter report earlier this year. The stock has risen nine-fold since the end of 2022, a rise that coincides with the rise in popularity of generative AI.
Nvidia has about 80% of the market for AI chips used in data centers, and this is a core business for OpenAI, Microsoft, Alphabet, Amazon, Meta and others, CNBC commented.
The quarterly report revealed that revenue in Nvidia’s data center business increased 427% from a year ago, accounting for about 86% of total sales.
Jensen Huang, CEO of Nvidia
Nvidia is a company that has often been synonymous with graphics cards and chips for gamers to run the latest video game titles. The company tried selling cryptocurrency mining chips and cloud gaming subscriptions, but eventually found its new path in the world of AI.
Forbes recently reported that Nvidia co-founder and CEO Jensen Huang is now the 11th richest person in the world, with a net worth of $117 billion.
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