Nvidia Overtakes Microsoft to Become World's Most Valuable Public Company
Nvidia surpasses Microsoft with a $3.34 trillion market cap as massive demand for its AI data center chips drives record growth. The chipmaker's stock skyrockets over 170% this year, leaving Apple behind as well.
Nvidia surpasses Microsoft to become the most valuable public company in the world as its stock climbs 3.6% to reach a $3.34 trillion market cap. This milestone leaves Microsoft at $3.32 trillion and Apple further behind at $3.29 trillion. Nvidia shares jump significantly after the company reports impressive first-quarter earnings in May, continuing a remarkable upward trajectory.
The chipmaker currently controls about 80% of the market for AI chips used in data centers. This specific business segment balloons as major tech companies like OpenAI, Microsoft, Alphabet, Amazon, and Meta race to purchase the processors required to build and run AI models. For the most recent quarter, Nvidia's data center revenue surges 427% from a year earlier to $22.6 billion, accounting for 86% of the company's total sales.
Originally known primarily for gaming hardware since its founding in 1991, Nvidia experiences a massive transformation over the past two years as Wall Street recognizes its technology as the core engine of the generative AI boom. This historic rally boosts co-founder and CEO Jensen Huang's net worth to approximately $117 billion. Meanwhile, Microsoft remains a major beneficiary of the AI trend and one of the largest buyers of Nvidia's GPUs for its Azure cloud service.