Company’s shares are up by more than 170% YTD
Software company Nvidia has surpassed Microsoft as the most valuable public company in the world, as reported in an article by CNBC.
The title had mostly been traded between Apple and Microsoft in the past few years. With Nvidia’s rapid rise, it has surpassed the two giants within a short span of time.
The firm’s shares saw a 3.6% increase, which had raised its market cap to $3.34 trillion and beaten Microsoft’s $3.32 trillion value. Notably, Nvidia only reached the $3 trillion mark for the first time earlier this month and surpassed Apple.
Nvidia had been seeing an increase in its shares by more than 170% this year, which had also increased further after it reported its earnings in the first quarter last May. Coinciding with the rise of generative artificial intelligence, the firm’s stock has significantly multiplied since the end of 2022.
The firm held 80% of the market for AI chips which were used in the booming business of data centers with the quest of OpenAI, Microsoft, Alphabet, Amazon, Meta, and many others in grabbing processors to build AI models and run large workloads that appeared to be increasing further. Most recently, Nvidia’s data center business revenue saw a 427% rise from the previous year, reaching $22.6 billion.
The rapid rise of Nvidia made it so that it has yet to be added to the Dow Jones Industrial Average, which was the stock benchmark of 30 of the most valuable companies in the US. It had also caused its co-founder and CEO Jensen Huang to have his net worth rise to $117 billion, which lifted him to the 11th spot of Forbes’ list of the wealthiest people in the world.
Nvidia had recently announced a 10-for-1 stock split that took into effect last June 7. This gave the firm a better chance in being added to the Dow, which is a price-weighted index that indicated firms that had higher stock prices had a big influence on the benchmark.
