Nvidia has overtaken Apple to become the world's second most valuable company, boasting a market capitalization exceeding $3 trillion. This significant milestone comes after a series of announcements at the annual Computex event, where Nvidia highlighted its strategic direction and upcoming technologies.
Nvidia's stock surged by 6.91% this week in anticipation of its 10-for-one stock split, effective June 7, which aims to make shares more accessible to investors. The company's valuation now stands at $3.01 trillion, a dramatic rise from its $1 trillion market cap reached in May 2023.
"The next Industrial Revolution has begun, companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center: AI factories, to produce a new commodity: AI," stated Jensen Huang, Nvidia's founder and CEO, during a recent earnings call.
Nvidia now ranks second in market capitalization, trailing only behind Microsoft. Both tech giants have seen substantial stock price increases driven by their investments in generative AI technologies.
However, Nvidia's position as the second most valuable company might be challenged soon. Apple is set to host its Worldwide Developers Conference next week, with CEO Tim Cook hinting at "significant investments" in generative AI that could potentially boost its market value.
Founded in the early 1990s, Nvidia initially focused on designing PC chips for video game graphics. Today, the company is a leading supplier of hardware for AI workloads, with global demand for its GPUs skyrocketing as businesses rush to leverage generative AI.
Nvidia's data center GPUs have seen unprecedented demand, with the company shipping 900 tons of AI chips in one quarter of 2023 alone, despite export restrictions to China, one of its major markets. At Computex, CEO Huang emphasized that Nvidia's accelerated computing hardware will "redefine the future."
Looking ahead, Nvidia is committed to an aggressive innovation schedule, aiming to release a new, powerful GPU every year until 2027. The company's Blackwell units are set to start shipping in 2025, indicating a sustained push to maintain its leadership in AI computing hardware.
Nvidia's strategic investments and technological advancements underscore its pivotal role in shaping the future of AI and computing. As the company continues to innovate and expand its market presence, it remains a critical player in the ongoing transformation of data centers and AI infrastructure worldwide.
