Nvidia, a company long associated with graphics chips for gaming, has recently become the most valuable public company in the world, surpassing Microsoft and Apple in market capitalization. The chipmaker's shares have seen significant growth, climbing 3.2% in midday trading to reach a market cap of $3.33 trillion.
The rise in Nvidia's stock price has been fueled by strong performance in its data center business, which has seen a 427% increase in revenue from the previous year. With about 80% of the market for AI chips used in data centers, Nvidia has become a key player in the growing field of artificial intelligence.
Founded in 1991, Nvidia has evolved from primarily selling chips for gaming to being a major player in AI technology. The company's CEO, Jensen Huang, has seen his net worth rise to about $117 billion, making him the 11th wealthiest person in the world.
Microsoft, a major player in the AI space as well, has a market cap of $3.32 trillion, while Apple's market cap stands at $3.28 trillion. Both companies have also seen stock price increases this year, with Microsoft up about 20%.
Nvidia's rapid ascent has led to speculation about its potential inclusion in the Dow Jones Industrial Average, a stock benchmark of the most valuable U.S. companies. The company recently announced a 10-for-1 stock split in an effort to improve its chances of being added to the index.
Overall, Nvidia's growth reflects the increasing importance of AI technology in various industries, as companies like Microsoft and Apple also benefit from the AI boom. The competition between these tech giants highlights the ongoing evolution of the technology sector and its impact on the global economy.