Nvidia Dethrones Microsoft To Become World’s Most Valuable Company

Nvidia has become the world’s most valuable company after its share witnessed an uptick move to an all-time high. The stock ended the trading day at around $136, up by 3.5%, making it more valuable than Microsoft. The company also beat Apple earlier this month.

Nvidia makes computer chips required for artificial intelligence (AI) software, and demand for its products has boosted its sales and profits over the last few years. Many investors believe the company’s earnings can grow even more, which has caused its share to reach new heights, though some have questioned its all-time high valuation.

The share’s recent rally means the market now values Nvidia at $3.34 trillion, with the price having almost doubled since the start of this year. Eight years ago, the stock was worth less than 1% of its current price.

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Competition Gets Fierce In The AI Race

The AI race has been at its peak, with Microsoft, Google, Meta, and Apple being some of the tech giants battling it out to create a world-leading product. This competition benefits Nvidia, which dominates the major chunk of the AI chip market.

Investors believe the company will continue to grow in value. Nvidia’s sales and profit figures have surpassed several expectations in recent years. In May, after the latest set of financial results were released, Quilter Cheviot technology analyst Ben Barringer said the firm had "once again cleared a very high hurdle. Demand is showing no signs of switching off either," he added. However, some of them are pretty cautious.

Back in February, Barclays credit analyst Sandeep Gupta argued that Nvidia’s large market share would be difficult to maintain with the growing number of rivals and questioned how Nvidia’s customers would monetize AI software.

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India Wants NVIDIA To Provide Indian Startups With GPUs

India is planning to join forces with chip-making giant NVIDIA and provide graphics processing units (GPUs) and Neural Processing Units (NPUs) to Indian startups. The plan is to offer these GPUs and NPUs at lower prices to local startups, researchers, academic institutions, and other users. This move will aim to strengthen the AI infrastructure in the country. 

This initiative is said to cost India around ₹10,000 crore and is still at a nascent stage. The Economic Times has reported that the final decision is expected to come after the 2024 general elections.

NVIDIA holds the majority share in the GPU market globally and has become the first option for India if the country wants to achieve its AI computing ambitions. Countries and companies across the globe are betting big on AI computing infrastructure and are lining up to get their hands on NVIDIA GPUs, especially the H100 chips.