They say that AI is poised to take over the world, but an AI beneficiary has already taken over the entire global listed space.
NVIDIA has gone past Microsoft to become the most valuable company in the world. After a 3.5 percent rise in its share price in trade yesterday, NVIDIA ended up with a market cap of $3.34 trillion. Microsoft, on the other hand, saw its shares fall by 0.45 percent, which took its market capitalization to $3.32 billion. This helped NVIDIA go past Microsoft to become the most valuable company in the world.
The list of the most valuable companies in the world currently stands as NVIDIA ($3.34 trillion), Microsoft ($3.32 trillion), Apple ($3.28 trillion), Alphabet ($ 2.1 trillion), Amazon ($1.9 trillion), Saudi Aramco ($1.78 trillion) and Meta ($1.26 trillion).
NVIDIA’s rise up the charts has been nothing short of meteoric. Its share price has zoomed 9x since the end of 2022, and is up 180 percent this year alone. The company wasn’t even in the top 10 of the world’s most valuable companies until 2022, but occupies pole position today.
This has happened largely thanks to the AI boom, which has caused a spike in demand for NVIDIA’s GPUs. NVIDIA is the only company which makes the Graphical Processing Unit chips which are used to train AI models, and it’s seen its business grow manifold since the release of ChatGPT. Now all tech companies and other businesses are looking to build and train their own models, which means that business at NVIDIA has never been better.
It’s however not clear if NVIDIA will be able to sustain this rally. Some voices are already saying that the impact of AI might be overblown, at least in the short term. Also AI hasn’t yet found found as many real-world cases as was initially anticipated, and hasn’t caused as much disruption as was initially feared in 2022. There are alternatives coming up as well — some companies are looking to generate GPU-like performance from those of standard chips, like those made by AMD. But for now, NVIDIA has smashed records — and created history — by becoming the most valuable company on the planet.