Nvidia Overtakes Microsoft as World's Most Valuable Public Company
Nvidia officially surpasses Microsoft to claim the top spot as the world's most valuable publicly traded company with a $3.34 trillion market capitalization. This historic milestone is driven by the chipmaker's dominant 80% market share in the booming artificial intelligence hardware sector.
Nvidia overtakes Microsoft to become the world's most valuable publicly traded company as its stock gains over 3.6% to reach a $3.34 trillion market capitalization. This achievement comes just days after Nvidia surpasses Apple, marking a dramatic shift in the top tier of the technology sector. Microsoft's stock falls 0.5% during the same trading session, leaving it with a $3.32 trillion market cap.
The chipmaker's incredible rise is directly tied to the explosive growth of generative artificial intelligence, with Nvidia holding an 80% share of the AI chip market for data centers. Hyperscale operators like Microsoft, Google Cloud, Amazon Web Services, and Meta are racing to purchase Nvidia's powerful graphics processing units to power their AI workloads. Since the launch of ChatGPT in late 2022, Nvidia's stock multiplies by more than ninefold as its hardware becomes essential for training and running large language models.
Nvidia's recent financial performance highlights this massive demand, with data center revenue hitting $22.6 billion in the latest quarter, a staggering 427% increase from the previous year. The company's year-to-date stock gains exceed 170%, fueled by a blowout earnings report in May and a recent 10-for-1 stock split. Chief Executive Jensen Huang's net worth also reaches $117 billion, making him the 11th wealthiest person globally as Nvidia serves as the primary benchmark for the AI industry's strength.