In a landmark development, Nvidia has overtaken Apple in market value, securing a position as the second-largest public company in the United States, trailing only Microsoft. This significant achievement comes as Nvidia’s market capitalisation reaches unprecedented heights, propelled by the rapid growth in demand for its advanced AI technology.
Despite recent price hikes on Nvidia products in China—where partners like Asus, GALAX, and Colorful have raised prices by up to 10% on GeForce RTX GPUs—the company’s cutting-edge technology continues to drive its market success. Nvidia reported first-quarter earnings of $26 billion in May, more than triple its revenue from the same period last year, underscoring sustained high demand for its products.
According to CNBC, Nvidia’s shares closed at $1,224.40 on Wednesday, June 5, marking a historic moment as the company’s market cap exceeded $3 trillion for the first time. Nvidia’s impressive market performance follows a period of significant growth, with the company’s stock soaring over 3,224% in the past five years. In February, Nvidia’s market value was $2 trillion, and it has taken just a few months to reach $3.01 trillion. This growth is not only due to the tech giant’s gaming GPUs but also its pivotal role in AI development, supplying chips to major companies like Google, Microsoft, Meta, Amazon, and OpenAI. Nvidia’s GPUs are essential for creating and deploying large AI models, fueling the current AI revolution.
Earlier this year, Nvidia reported a staggering 769% increase in annual profit. The company’s data centre revenue has now surpassed gaming as its primary income source, reflecting its strategic shift towards AI. Although gaming now accounts for only 12% of Nvidia’s total earnings, the focus on AI has significantly boosted investor confidence and market value. Nvidia’s rise to a $3 trillion market cap highlights its pivotal role in the AI boom and its dominance in the tech industry.
Dear Reader,
Every day, our team at EastMojo travels through rain, rough roads, and remote hills to bring you stories that matter – stories from your town, your people, your Northeast.
We do this because we believe in truthful, independent journalism. No big corporate backing, no government pressure – just honest reporting by local journalists who live and breathe the same air you do.
But to keep doing this work, we need you. Your small contribution helps us pay our reporters fairly, reach places others ignore, and keep asking the tough questions.
If you believe the Northeast deserves its own fearless voice, stand with us.
Support independent journalism. Be a Member.
Thank you,
Karma Paljor
Editor-in-Chief, eastmojo.com
Looking ahead, Nvidia is set to further its AI ambitions through potential collaborations with industry giants like Dell. At the recent Dell World Conference, CEOs of Dell and Nvidia hinted at developing AI-powered PCs expected to debut in 2025. This partnership, along with Nvidia’s ongoing work with MediaTek on ARM-based chips, indicates a future where AI integration in personal computing becomes standard, further solidifying Nvidia’s market leadership.
Nvidia’s innovation is not limited to hardware; the company recently launched Project G-Assist, an AI tool that provides real-time game tips and performance tweaks, showcasing its commitment to enhancing user experiences through AI. The company’s advanced GPUs and innovative AI solutions have driven significant growth, positioning Nvidia to lead the industry into the next era of technology.
Also Read | Nvidia’s AI push: New toolkit, Project G-assist, and RTX AI PCs