Nvidia has experienced another market surge and has become the most valuable company in the world, once again surpassing many of its top rivals.
The company, which has become synonymous with building components designed to power the data centers behind the AI push, now has a market cap of $3.335 trillion, putting it just slightly ahead of Microsoft, the current second place holder , and Apple, which occupies third place.
Nvidia’s latest success in taking the top spot comes in the same month that the company became the third in the world to reach a market capitalization of $3 trillion.
Nvidia takes the top spot
Since hitting the $3 trillion mark nearly a year ago, Apple’s growth has stagnated somewhat, with the company alternating between first and second place with Microsoft, each representing a market capitalization about $1 trillion more than Google, which was usually in third place.
In recent months, Nvidia stock prices have skyrocketed – up 181% since the start of the calendar year. Nvidia stock prices have gone through the roof over the past five years, rising 3,477%.
In its most recent quarter, Nvidia’s data center revenue rose 427% year over year to $22.6 billion, accounting for about 86% of the company’s total revenue. Major tech companies like OpenAI, Microsoft, Alphabet, Amazon and Meta, which are already vying to take their market capitalization to new limits, have invested heavily in Nvidia’s processors to build and run large AI models.
CEO Jensen Huang, who owns a 3% stake in Nvidia, is now estimated to be worth about $118.7 billion, making him the 11th richest person in the world, two places behind former Microsoft CEO Bill Gates.
Despite its initial beginnings in the gaming industry, Nvidia’s dominance in the AI market highlights the impact of artificial intelligence both within the technology sector and on the global economy.
While Nvidia’s growth has been wildly impressive in recent months, financial experts are starting to wonder whether the company will be able to maintain its upward trajectory much further. With the previous $3 trillion glass ceiling already broken, could Nvidia be the first company to reach a $4 trillion market cap?