After a meteoric surge this year, NVIDIA (NASDAQ:NVDA) has overtaken tech behemoths Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) to become the world's most valuable public company.
The rise of artificial intelligence (AI) has played a major role in its rise. The company's graphics processing units (GPUs) are essential for AI systems, and demand has leaped as AI becomes a part of everyday life.
NVIDIA has continued to progress amid the AI craze. In March, the company announced the debut of Blackwell, a brand-new line of AI GPUs that promises a seismic jump in computing power compared to its predecessor.
Currently NVIDIA controls an estimated 70 to 95 percent of the market for AI chips.
According to the New York Times, NVIDIA's share price rose by 3.6 percent on Tuesday (June 18), pushing its market value to US$3.34 trillion, surpassing Microsoft and Apple, which both saw declines.
NVIDIA's big move marks one of the fastest ascents in market history. Just two years ago, the company's market value was slightly over US$400 billion. Over the past year, NVIDIA's market value has skyrocketed from US$1 trillion to more than US$3 trillion, reflecting the company's growing dominance in the AI sector.
In comparison, Apple took nearly five years to grow from a US$1 trillion valuation to US$3 trillion.
“No one else fully saw or appreciated this,” Daniel Newman, chief executive of the Futurum Group, told the New York Times. “They saw the trend, built for the trend and enabled the market. They can effectively charge whatever they want.”
NVIDIA's success has also elevated CEO Jensen Huang’s status in the tech industry. He started the company’s journey in developing chips that can render images in video games, thus making NVIDIA synonymous with the gaming industry.
The tech sector’s race to achieve a US$4 trillion market value is now centered on NVIDIA, Apple and Microsoft, with analysts predicting intense competition among these tech giants.
Microsoft has invested heavily in OpenAI, the maker of ChatGPT, and Apple recently announced a partnership with OpenAI to boost its spot in the AI race. Companies including AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) have recently gotten more involved as well, launching new AI chips at a recent Taiwan-based tech event.
NVIDIA saw revenue of US$26 billion in its latest quarter, and is projecting a US$28 billion figure for the coming period.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.