No Apple, Nor Microsoft: Nvidia is Now World's Most Valuable Company with Market Capitalisation of $3.335 Trillion

In a historic shift, Nvidia has become the world’s most valuable company, surpassing tech giants Microsoft and Apple. 

The Santa Clara, California-based chipmaker's market capitalisation soared to $3.335 trillion on Tuesday, driven by a remarkable 3.5 percent rise in its stock price to $135.58. 

This achievement marks a significant milestone for Nvidia, which has emerged as the central player in the artificial intelligence (AI) boom.

Nvidia's ascent to the top spot comes just days after it surpassed Apple to become the world’s second most valuable company. 

In contrast, shares of Microsoft and Apple, now occupying the second and third positions, respectively, experienced declines of 0.45 percent and 1.1 percent. 

This remarkable rally has also buoyed the S&P 500 and Nasdaq indexes to record highs, continuing a spectacular winning streak for Nvidia.

The driving force behind Nvidia's meteoric rise is the voracious demand for its graphics processing units (GPUs), which are integral to the development of AI technologies. 

Tech giants such as Microsoft, Meta, and Google rely heavily on Nvidia's AI chips for their data centres, which are essential for running AI models like OpenAI’s ChatGPT. 

This demand has propelled Nvidia's stock price to surge nearly 182 percent this year alone, following a more than threefold increase in 2023.

Nvidia now controls approximately 80 percent of the market for AI chips used in data centres, solidifying its dominant position in the industry. 

Since its stock market debut in 1999, Nvidia shares have skyrocketed by an astounding 591,078 percent. 

To put this into perspective, an investor who put $10,000 into the company in 1999 would now hold $59,107,800 worth of stock, according to the Kobeissi Letter newsletter on capital markets.

Nvidia's journey to the top has been a fascinating one. For its first few decades, the company primarily focused on producing chips for computer games. 

However, as the demand for AI technologies exploded, Nvidia's GPUs became the backbone of AI development, leading to its current position as the world's most valuable company.

This historic achievement not only highlights Nvidia's pivotal role in the AI industry but also signals a broader shift in the tech landscape. 

As AI continues to transform various sectors, Nvidia's chips will remain crucial to the advancement and implementation of these cutting-edge technologies. 

With its market capitalisation now exceeding $3.335 trillion, Nvidia has firmly established itself as a powerhouse in the global tech industry, outshining even the most established giants like Microsoft and Apple.