Nvidia became the most valuable company in the world with a capital of $3.34 trillion

Nvidia has become the most valuable company in the world, surpassing Microsoft and Apple in terms of market capitalisation.

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The US chipmaker's shares rose by 3.6%, bringing its total market capitalisation to $3.34 trillion. This jump put Nvidia in the first place, displacing Microsoft, which is currently valued at $3.32 trillion.

The growth of Nvidia shares this year has been unique: they have risen by 180% since the beginning of the year. This jump accelerated significantly after the company released its first-quarter earnings report in May.

Since the end of 2022, Nvidia shares have risen ninefold, coinciding with the rapid development of the generative artificial intelligence market.

Nvidia has a dominant share (about 80%) in the market of artificial intelligence chips used in data centres. This makes the company a key partner for such tech giants as OpenAI, Microsoft, Alphabet, Amazon, Meta, and others that are actively investing in the development and implementation of AI solutions.

According to the quarterly report, Nvidia's revenue from the data centre segment grew by 427% year-on-year, accounting for about 86% of total sales.

This success makes Jensen Huang, co-founder and CEO of Nvidia, one of the richest people in the world. Forbes recently estimated his fortune at $117 billion, which puts him at the 11th place on the list of the world's richest people.

Nvidia was once known primarily as a manufacturer of graphics cards for gamers, but it has managed to successfully transform itself to become a leader in the field of artificial intelligence.

Its chips are used not only to run the latest video games, but also to develop revolutionary AI applications that are changing the world. Given the rapid growth of the AI market, it is likely that Nvidia will continue to be a leader in this field for many years to come.

Source: CNBC