This AI company grew 4X in a year, surpassing even world's major stock exchanges
This AI company grew 4X in a year, surpassing even world's major stock exchanges
Nvidia has seen its stock price increase by nearly fourfold in the past year, driven by its pivotal role in the AI revolution. This growth has positioned Nvidia among the world's largest companies, with a market cap approaching that of Apple.
This AI company might soon become the most valued company in the world
Nvidia, the tech company at the heart of the AI revolution, has seen its stock rise nearly fourfold in just about a year. This surge has positioned Nvidia among the biggest companies globally, even surpassing the market capitalization of many major stock exchanges.
A recent rally in Nvidia shares boosted its market capitalization, with the share price increasing by 20 per cent. Now valued at $2.71 trillion (Companies Market Cap), Nvidia is closing in on Apple, which holds a $2.91 trillion market cap. Microsoft tops the list with a market cap of $3.19 trillion, while Meta Platforms is at around $1.20 trillion. In the past year, NVIDIA's market cap has grown around 4x (3.88 times).
Nvidia's market capitalization has seen remarkable growth over the years (by Companies Market Cap):
To put Nvidia's market cap into perspective, it exceeds the combined market cap of all listed companies in Germany, which stands at around $2.37 trillion as of March 2023. Nvidia's valuation is more than half the combined valuation of companies listed on India's stock exchanges, BSE and NSE, which fluctuate around the $5 trillion mark.
What is NVIDIA doing right?
Nvidia's exponential rise is driven by its crucial role in the AI revolution. Its graphics processing units (GPUs) are essential for powering AI applications. Despite competition from general-purpose and custom AI chips developed by competitors and customers, Nvidia's GPUs remain the preferred choice.
Recently, Nvidia announced that the demand for its H200 and Blackwell chips exceeds supply. CEO Jensen Huang expects continued demand for older versions of Nvidia’s AI chips, alongside strong interest in the latest Blackwell GPUs.
In contrast, Apple has faced a challenging 2024. Regulatory scrutiny and declining iPhone sales abroad have dampened its stock performance. While Apple’s stock is up 9 per cent from last year, this growth is modest compared to rivals like Meta, Amazon, Google, and Microsoft.