Nvidia has seen another rise in the market to become the most valuable company in the world, once again surpassing many of its key rivals.
The company, which has become synonymous with building components designed to power the data centers behind the AI push, now has a market capitalization of $3.335 trillion, putting it just slightly ahead of Microsoft , current second place, and Apple, which resides in third place.
Nvidia's latest success in taking a prime position comes in the same month that the company became the third in the world to reach a market capitalization of $3 trillion.
Nvidia takes first place
Since hitting the $3 trillion mark almost a year ago, Apple's growth has stalled a bit, with the company occupying both first and second place alongside Microsoft, each representing a market capitalization about $1 trillion more than Google, which typically ranked third.
In recent months, Nvidia's share prices have skyrocketed: since the start of the calendar year, they're up 181%. Nvidia's stock prices have soared over the past five years, rising 3,477%.
In the most recent quarter, Nvidia's data center revenue increased 427% year over year to $22.6 billion, representing about 86% of the company's total sales. Already struggling to push their market boundaries to new limits, major tech companies like OpenAI, Microsoft, Alphabet, Amazon, and Meta have invested heavily in Nvidia processors to build and run large AI models.
CEO Jensen Huang, who owns a 3% stake in Nvidia, is estimated to be worth around $118.7 billion, making him the 11th richest individual on the planet, two places behind the former CEO of Microsoft, Bill Gates.
Despite its beginnings in the gaming industry, Nvidia's dominance in the AI market highlights the impact of artificial intelligence both within the technology sector and the global economy.
While Nvidia's growth in recent months has been tremendously impressive, financial experts are beginning to wonder whether the company can maintain its upward trajectory for much longer. With the previous $3 trillion glass ceiling already broken, could Nvidia be the first company to reach a $4 trillion market cap?
