July 24, 2024
NVIDIA Surpasses Apple and Microsoft to Become World’s Most Valuable Company
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NVIDIA Surpasses Apple and Microsoft to Become World’s Most Valuable Company

Jun 19, 2024

In a historic turn of events on Tuesday, NVIDIA, the renowned chipmaker, seized the throne as the world’s most valuable company. With its shares soaring by 3.2% to $135.21, NVIDIA’s market capitalization skyrocketed to an astonishing $3.34 trillion. This surge eclipsed both Microsoft and Apple, who trailed closely with market caps of $3.32 trillion and $3.29 trillion, respectively.

This achievement marks a remarkable ascent for NVIDIA, which just last week briefly overtook Apple to claim the second position before solidifying its lead. The company’s stock has surged an impressive 173% this year, a stark contrast to Microsoft’s 19% increase, fueled largely by soaring demand for NVIDIA’s advanced processors crucial in dominating the artificial intelligence (AI) landscape.

NVIDIA’s unprecedented growth trajectory has been punctuated by strategic milestones, including a recent ten-for-one stock split aimed at making its shares more accessible to individual investors. This move, effective since June 7, has been lauded for democratizing ownership and bolstering retail investor engagement.

The company’s meteoric rise is deeply rooted in its dominance of AI hardware supply, a sector where competitors like Microsoft, Meta Platforms, and Alphabet are also vying for supremacy. NVIDIA’s pivotal role in supplying cutting-edge processors has positioned it ahead in the race to power AI technologies.

Since its founding in 1993, NVIDIA has consistently defied expectations. From its early days on the Nasdaq stock exchange in 1999 to joining the prestigious S&P 500 in less than three years, NVIDIA has delivered exceptional returns to its investors. With a total return of 591,078% since its IPO, NVIDIA stands out as one of the top-performing stocks over the last quarter-century.

Looking forward, analysts are bullish on NVIDIA’s prospects, especially after its recent financial results surpassed even the most optimistic Wall Street projections. The company’s data center sales have now outpaced its gaming revenue for the first time, underscoring its expanding influence in critical tech sectors.

NVIDIA’s remarkable journey to the summit of corporate valuation underscores the vision of its co-founder and CEO, Jensen Huang, who foresaw the shift towards accelerated computing. This foresight, coupled with strategic pivots and industry-leading innovations, has propelled NVIDIA to its current pinnacle, setting a new standard in tech industry leadership.

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