New Delhi: NVIDIA has overtaken as the world’s biggest and most valuable company in AI technology after Apple. The latest growth has been because of a spurt in the demand for AI chips. NVIDIA recently touched $3.53 trillion, over Apple’s $3.52 trillion valuation. There were headlines about Microsoft when the latter’s stock went past $3.2 trillion.
The 18% increase of NVIDIA stock in this October is a significant factor that helped the company gain an upper hand in the tech market. Association with OpenAI and successful chips for AI also have been great supports. This is so because it has been crucial in the hardware powering advanced models of AI, such as GPT-4 by OpenAI, which makes their impressive quarterly profits a significant seal on the status as leaders of AI technology.
For GPUs, NVIDIA commanded 88% of the market, which means it highly needed to train AI applications. Thus, the increasing commitment of the company to its developments about next-generation AI hardware, including the upcoming Blackwell chips, has convinced investors. Still, now some analysts raise a question if the valuation of NVIDIA is merely justified or just some hype in AI.
The strategic value NVIDIA’s CEO, Jensen Huang, strives for is staying competitive, yet the CEO insists people need to embrace AI technology at all costs. The company revenue growth has been immense: in 2024, NVIDIA recorded $60.9 billion. The immense influence it carries on the stock market, particularly the S&P 500 index, cannot be overlooked.
This technology milestone breaks the pattern because NVIDIA has transitioned from a mainly game-chip company to becoming an important participant in the infrastructure business of AI. This growth is fueled by the fierce competition between the majors-Microsoft, Alphabet, and Meta-over the developing of AI technologies.
About NVIDIA:
NVIDIA Corporation is a technology multination incorporated in the United States of America in Santa Clara, California. It specializes in designing and supplying graphics processing units, in addition to other application programming interfaces, data science, and high-performance computing. Another indirectly associated product with this company is system-on-chip units referring to SoCs for mobile computing purposes. The company specializes in hardware and software artifacts related to artificial intelligence.
