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- Nvidia has dethroned Apple as the second most valuable company in the world.
- The company’s secret sauce? Its leading role in AI, which is spearheaded by its top-tier H100 chip.
- While Intel and AMD lag behind, Nvidia’s trajectory suggests it’s well-positioned to claim the title of the world’s most valuable company.
Nvidia has achieved a historic milestone by becoming the second most valuable company globally after Microsoft. Wednesday afternoon saw the chipmaking giant’s market value hit $3.01 trillion, surpassing Apple’s $3 trillion market cap.
This impressive growth puts Nvidia’s position at the top of the tech world.
Why it matters: Nvidia’s investment in AI is paying dividends. This achievement highlights the company’s dominance in the growing field of AI and high-speed computing.
Nvidia has become massive mainly because of its leading position in the AI sector, led by its top H100 chip. The company’s value has been skyrocketing, reaching $1 trillion in May 2023 and crossing $2 trillion in February of this year.
Nvidia’s growth is faster than that of tech giants like Amazon, showing its crucial role in the AI revolution. The company’s shares have surged by 95% just this year, surpassing its competitors and showing how hungry investors are for AI-related investments.
Nvidia’s strong showing is also seen in its hefty presence on the S&P 500 index, making up over 5%. In May, Nvidia announced an impressive $14 billion profit, thanks to the strong desire for its advanced chips.
The company’s stock has also surged, now sitting at more than $1,220 per share. The tech giants are set to split its stock on June 7th, aiming to make its shares easier for more people to invest in.
Apple, previously the top dog in the tech world, has had some tough times lately. Slipping iPhone sales and tough competition in the tech industry have taken a toll on its worth.
Earlier this year, Apple lost its title as the most valuable U.S. company to Microsoft, and now Nvidia has taken the second spot. However, Apple still stands tall in the tech industry with a market value of around $2.5 trillion.
Regardless, Nvidia leads the way in AI accelerators, with a share between 70 percent and 95 percent of the market, as reported by CNBC. This highlights Nvidia’s vital contribution to the development of AI technologies.
Their dedication to innovation shines through with their yearly launch of a new AI chip, beginning with the much-awaited Blackwell B200 GPU later this year.
Right now, it seems Nvidia is well on its way to becoming the world’s most valuable company. Intel and AMD still have a lot of ground to cover in order to compete with the tech giants like Microsoft.
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