NVIDIA most valuable company in the world – thanks to the AI boom

Apple, Microsoft or SAP? All of them are – you could say – yesterday’s news. NVIDIA left all the big names coughing up a cloud of dust and is now the most valuable company in the world at around $3.3 trillion.

NVIDIA: From games to top dog AI

The AI boom makes this possible. At the beginning of June, the chip company NVIDIA overtook Apple in market value, and shortly afterwards Microsoft overtook it in record time. Two years ago, the chip maker was known only in gaming circles. At the time, NVIDIA was primarily known as a manufacturer of graphics card chips. These can be found, for example, in almost all game consoles, from PlayStation to XBOX to Nintendo Switch.
But then came the AI boom and suddenly everything changed.

The company’s semiconductors are also used in many artificial intelligence applications. The California-based company presented its new business numbers in May, and investors must have been extremely pleased. NVIDIA’s revenue grew sevenfold compared to the previous year, and revenue quadrupled to $26 billion. NVIDIA chips are primarily used in AI training or in data centers where software is trained. A huge amount of data is processed there, sometimes even in real time.

Only this March, Jensen Huang, one of the founders, introduced a new generation of chips called Blackwell, which is supposed to be even faster than its predecessor Hopper, but at the same time consume less energy. Thanks to his company, Huang made it to the list of the world’s richest people and is currently in 12th place.

The Nvidia stock has risen by 591,078 percent since its IPO in 1999, according to calculations by the financial service Bloomberg – including reinvested dividends.