Nvidia becomes world’s largest public company with market cap topping €3.1 trillion
Nvidia is now the world’s most valuable public company, surpassing Microsoft and Apple. On Tuesday, Nvidia’s market capitalization closed at approximately $3.34 trillion (€3.1 trillion), edging past Microsoft’s $3.32 trillion (€3.09 trillion) valuation and Apple’s market cap of $3.27 trillion (€3.04 trillion).
The chipmaker’s stock rose by 3.5 percent on Tuesday, while Microsoft’s fell by 0.5 percent and Apple’s declined by 1.1 percent. This milestone marks Nvidia‘s entry into the exclusive group of U.S. companies with a market cap exceeding $3 trillion (€2.79 trillion), joining ranks with tech giants like Microsoft and Apple.
AI dominance fuels Nvidia’s rise
Nvidia’s ascent to the top has been driven by its dominance in the artificial intelligence (AI) sector. The company produces processors essential for AI systems, including those powering generative AI technologies like OpenAI’s ChatGPT. This technological leadership has spurred a significant increase in Nvidia’s stock, which has soared approximately 174 percent this year, making it the best performer in the S&P 500 index for 2023.
The AI boom has significantly boosted Nvidia’s fortunes. As the demand for AI-capable chips continues to grow, Nvidia’s position as the leading supplier remains unchallenged. In a BBC report, Chris Penrose, Nvidia’s global head of business development for telecommunications was quoted saying that the AI revolution is just beginning and is poised to drive further growth for the company.
Competition and prospects
Nvidia’s rise has not come without competition. Major tech companies like Microsoft, Alphabet, Meta, and Apple are all vying to develop leading AI products. Despite this fierce competition, Nvidia remains a dominant player in the AI chip market.
While some analysts question the sustainability of Nvidia’s growth amid increasing competition, the company’s recent financial performance has exceeded expectations. In its latest quarterly report, Nvidia reported a 262 percent increase in revenue and a 462 percent rise in profits year-over-year.
