Nvidia Surpasses Microsoft as World’s Most Valuable Company

Nvidia, the main beneficiary of the ongoing scaling process of the so-called artificial intelligence boom on Wall Street, has become the most valuable company in the world.

Nvidia Surpasses Microsoft as World's Most Valuable Company

The mentioned firm, which is based in Santa Clara, California, displaced from the position of leader in the context of the mentioned indicator Microsoft. It is worth noting that Nvidia is currently the supplier of what can be symbolically described as the energy or fuel of the era. The company develops graphics processing units (GPUs), which are necessary for the training and subsequent operation of artificial intelligence systems. It is worth noting that machine intelligence is currently called by many experts, analysts, and representatives of the technological environment that in the short term will become the main driving force of the progress of human civilization in terms of a global understanding of the relevant process and its impact on all aspects of livelihood of mankind. The artificial intelligence industry is currently in the condition of high-intensity development. For example, technology giants such as Google and Microsoft are fully involved in the so-called machine intelligence race. Moreover, new startups are constantly emerging, operating in the artificial intelligence industry and developing AI-based products. Against the background of the current realities and the prospects of their transformation into a state of affairs that in the future will become decisive for the configuration that forms the condition of the space of existence of human civilization, it is as likely and realistic as possible that Nvidia GPUs will be in demand in the long term.

On Tuesday, June 18, the market capitalization of the Santa Clara-based company was at roughly $3.34 billion. At the same time, Microsoft’s similar figure is at the $3.32 trillion mark. Apple’s market capitalization currently stands at $3.27 trillion.

On Tuesday, the value of Nvidia shares showed an increase of 3.5%. At the same time, Microsoft’s securities were on a downward trajectory. The corresponding indicator decreased by 0.5%. The value of Apple shares also showed a negative dynamic. The securities of this company fell by 1.1%.

Recently, Nvidia has been going through what can be described as a period of growing success. This month, the company’s market capitalization exceeded the historical mark of $3 trillion.

At the same time, it is worth noting that over the past year and a half, there has been a process of falling value of shares of chip manufacturers. At the same time, Nvidia is experiencing impressive success. The tendency of the fall in the value of shares of chip manufacturers has not become a factor of negative impact on the mentioned company’s business and financial performance, which in a symbolic sense have already risen above the runway and are conquering new heights of growth. This position of Nvidia is largely due to the actual absence of a significant conference. For example, AMD also has ambitions in producing chips for artificial intelligence, but even at the level of plans, the materialization of which is still a theoretical prospect, and not accomplished fact of objective reality, this company is significantly inferior to the firm from Santa Clara. AMD plans to sell $4 billion worth of so-called artificial intelligence accelerators this year. At the same time, according to preliminary estimates released by the media, only one Nvidia unit specializing in data centers will earn $100 billion over the current year. This figure exceeds the combined annual revenue of Intel and AMD.

Currently, any competition with Nvidia is in a certain sense formal and inherently nominal, since the scale of activity of other companies is many times smaller. This firm has no equal in the production of chips that power artificial intelligence systems, including generative AI configurations, which are a functional platform for, among other things, one of the most popular chatbots in the world, ChatGPT, capable of creating text, images and other multimedia materials.

Currently, Nvidia’s market share of artificial intelligence microcircuits used in data centers is about 80%. Large companies such as OpenAI, Microsoft, Alphabet, Amazon, and Meta are increasingly snapping up processors needed to develop machine intelligence models and run growing large workloads.

Nowadays, Nvidia is the leader among the technology giants of the so-called Magnificent Seven. The upward dynamic of this company provided most of the returns to the stock market after the artificial intelligence boom spread to Wall Street last year. Over the past year, Nvidia’s securities have risen by about 174%, becoming the best in the S&P 500 index.

The success of the company, headed by Jensen Huang, increases competition on Wall Street among technology companies. It is worth noting that in this space, the alignment of forces is a very dynamic condition, which is often transformed as a configuration. For example, last week Apple became the most valuable company in the world. This result was achieved after the mentioned firm made statements at the annual Worldwide Developers Conference about its start in the artificial intelligence industry. For example, in this case, the integration of AI features into the iPhone was announced. Against this background, the shares of the technology giant have risen in price. At the same time, the specified result turned out to be very short-term.

Last quarter, Nvidia recorded revenue and profit growth of 262% and 462% year-on-year, respectively.

There is an opinion in the expert community that the shares of the company headed by Jensen Huang will continue to be on a high-intensity growth trajectory, which as a result is expected to lead to the fact that the market capitalization of the firm will approach the $5 trillion mark. Rosenblatt Securities analyst Hans Mosesmann hiked his price target on Nvidia to a Wall Street high of $200 from $140.

It is worth noting that the Santa Clara-based company’s products also help power data centers that run complex computational tasks of artificial intelligence. Hans Mosesmann stated that the real narrative lies in the software that complements all the hardware goodness.

Nvidia was founded in April 1993. During the first decades of its history, the company primarily sold chips for gamers to run 3D titles. The firm also dabbled in cryptocurrency mining microcircuits and cloud gaming subscriptions.

Wall Street has recognized artificial intelligence as a promising technology that has huge potential. It is also worth noting that the mentioned potential is widespread and in the foreseeable future will extend to many aspects of human civilization. Currently, there are not even minimal signs that the artificial intelligence boom will slow down. Against this background, Jensen Huang’s net worth has reached $117 billion, making him the 11th wealthiest person in the world.

It is worth noting that Microsoft also benefits from the highly intensive development of artificial intelligence. Since the beginning of the current year, the value of the technology giant’s shares has increased by 20%. The mentioned result is largely because Microsoft has become the owner of a significant stake in OpenAI and integrated the artificial intelligence models of this brand into its digital ecosystem. At the same time, the technology giant is one of the largest buyers of GPUs from Nvidia. These products are necessary for the operation of the Azure cloud service. Microsoft also presented a new generation of laptops designed to run machine intelligence models.

It’s worth noting that during the period of active development and spread of artificial intelligence, the level of importance of the issue of cybersecurity is growing. In the context of this problem, the most significant aspect is that cybercriminals also have access to machine intelligence. The use of advanced technology makes their activities more sophisticated and difficult to detect. Against this background, the personal awareness of users is of particular importance. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device. It is worth noting that digital literacy is also a tool to combat virtual crime. Artificial intelligence can also be used to generate deepfakes, audio, and video materials with a high level of realism. Often, this content is a means of conducting various kinds of manipulative campaigns in the information space.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.