In light of the growing demand for artificial intelligence chips, NVIDIA's capitalization has exceeded $3 trillion, overtaking Apple and becoming the second most valuable company in the world after Microsoft.
NVIDIA - the king of AI
Triumph of the semiconductor industry
NVIDIA's hegemony in the development of processors for artificial intelligence has become the engine of unprecedented growth in the company's value. Thanks to the latest H100 chips, the chip designer's market capitalization has reached an unprecedented $3.01 trillion, leaving behind tech giant Apple's $3 trillion.
Rocket Road to the Top
Just a year ago, in May 2023, NVIDIA's price crossed $1 trillion, and in February of this year it surpassed $2 trillion, surpassing Amazon and Alphabet (Google). In May, the company reported record profits of $14 billion, driven by strong demand for its chips, sending NVIDIA shares up 24%.
Countdown to Section
Currently, NVIDIA is only behind Microsoft in its market share capitalization $3.15 trillion. The cost of one NVIDIA share is $1,224, but the company plans to split the shares on June 7.
Cloud Growth Driver
Investors are confident that NVIDIA's colossal sales to cloud providers will only grow. In the most recent quarter, revenue from its data center business, which includes GPU sales, soared 427% year-over-year to $22.6 billion, or about 86% of the company's total revenue.
Apple's problems
Meanwhile, Apple shares are up only 5% this year , as iPhone sales have stalled in recent months. In its latest earnings report, Apple reported a 4% decline in overall revenue and a 10% decline in iPhone sales compared to the same period last year. Apple has faced strategic and demand challenges in China, manufacturing, and mixed reactions to its new Vision Pro virtual reality headset.
Change of leader
Apple became the first company whose market capitalization reached $1 trillion, and then $2 trillion. It long held the title of the most valuable US company but was surpassed earlier this year by Microsoft, which has also benefited from investor demand for AI infrastructure.
Unprecedented Dominance
NVIDIA AI accelerator chips account for 70% to 95% of the market. The company plans to release a new AI chip annually, starting with the Blackwell B200 GPU expected later this year. A new Vera Rubin GPU architecture has also already been announced.
Glossary
- NVIDIA is a leading American designer of graphics processing units and chip-based systems for the gaming, professional systems, data center and automotive markets .
- Apple is an American technology company, manufacturer of smartphones, tablets, laptops, software and other electronics.
- Microsoft is a transnational company that develops software for various computing devices and cloud services.
- Amazon is one of the largest technology companies in the world, owner of the online trading platform of the same name and provider of AWS cloud services.
- Alphabet (Google) is a holding company, owner of the search engine of the same name and other Internet services.
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Answers to questions
Which company became the second most valuable company in the world, overtaking Apple?
How has NVIDIA's value changed over the past year?
Why is NVIDIA's market cap growing so fast?
What is the market share of NVIDIA AI accelerators?
How have Apple's sales changed lately and what challenges does the company face?
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Discussion of the topic – NVIDIA overtakes Apple in market capitalization: the new king of semiconductors
NVIDIA became the second most valuable company in the world with a capitalization of $3.01 trillion. Having overtaken Apple, the AI and GPU chip maker is now dominating the artificial intelligence race with its cutting-edge designs, particularly its H100 chips.
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ЭмилияФ
This breakthrough by NVIDIA is a phenomenal success in the field of artificial intelligence. The company has pushed the boundaries of technology and shown that its H100 chips are the undisputed leaders in the field of AI. 😎 I wonder what new features they will give users in the future?
ЛюдовикМ
You're right, Emilia! Given NVIDIA's exponential growth, I'm interested in how this will impact the rest of the industry. 🤔 Will other companies be able to catch up or will we see a monopolization of the AI market?
ЭлеонораФ
The fact that NVIDIA has overtaken Apple in capitalization is truly amazing! I think this reflects the growing demand for artificial intelligence solutions. 💻 Let's see if Apple can regain its position with Vision Pro.
ФранческоМ
To be honest, I'm skeptical about NVIDIA's huge capitalization. 🧐 Yes, their chips are impressive, but how sustainable is this success? The AI market is too young and unpredictable to predict further growth.
РудольфМ
I don't agree with you, Francesco. 👎 Nowadays, progress is taking place by leaps and bounds, and NVIDIA is at the forefront of these changes. Their solutions are in demand by the largest IT giants, which guarantees them a stable income. And smart investments in research will help you remain an industry leader.
РомуальдМ
I can't help but admire NVIDIA's flexibility! 💪 Judge for yourself: just a year ago they were worth a trillion, and now they are twice as much. Who would have thought that the AI market would gain momentum so quickly? The ability to adapt in time is the key to their success.
МартинМ
Yes, all this news about NVIDIA is impressive. 🤯 But I'm worried about dependence on one supplier. Isn't it better to develop competition to avoid monopoly and stagnation in the field of AI? Or do you consider NVIDIA irreplaceable?
АнрикМ
Eh, young people, you've lost it again! 🙄 All these chips and capitalization are just fashionable things. Let's see what happens in a couple of years, when the next trend hits the market. In the meantime, NVIDIA is just another rotten fish around which there is a stir. 😒