Nvidia has surpassed Microsoft to become the world’s most valuable company on Tuesday, as its shares soared on the back of growing demand for artificial intelligence (AI) and the chips that power it. This increase in market capitalization comes after a year and a half of frenzied interest in AI technology, driven by the release of ChatGPT and other advancements in the field.
Nvidia’s rise to the top has been remarkable, as it has evolved from a prominent graphics processing unit manufacturer for gaming computers to a dominant player in the AI semiconductor market. Its value has grown more than tenfold since October 2022, when the release of ChatGPT ignited the AI craze that has captured markets ever since. In May of last year, Nvidia became the seventh U.S. company to achieve a market cap of over $1 trillion, and by February of this year, it had surpassed $2 trillion. Just earlier this month, it reached the $3 trillion mark in just 96 days.
The recent success of Nvidia can be attributed to several factors, including the unveiling of its next-generation AI platform, Rubin, which is set to launch in 2026 and will replace the previously announced Blackwell platform. Additionally, positive developments in AI technology and strong earnings reports from other AI infrastructure suppliers like Broadcom and Oracle have contributed to an overall optimism in the industry. Even Apple’s recent announcement of Apple Intelligence has added to this positive sentiment surrounding AI technology.
As Nvidia continues to innovate and expand its reach within the AI sector, it remains well-positioned for future growth and success. With its market capitalization now exceeding $3 trillion, there is no denying that Nvidia is one of today’s most valuable companies – if not THE most valuable company – in the world of technology.
