Chipmaker Nvidia is now the largest publically traded company in the world. Nvidia shares rose 3.2% on Tuesday, raising the company's market value to $3.33 trillion, thus surpassing Microsoft. Earlier this month, Nvidia reached a market value of $3 trillion, surpassing Apple.
Nvidia stock has gone up more than 170% this year and has multiplied its worth ninefold since the end of 2022, coinciding with the rise of generative artificial intelligence. Nvidia currently controls about 80% of the AI chip market used in data centers, a field that boomed once OpenAI, Microsoft, Alphabet Inc., Amazon, Meta and others rushed to get their hands on competent processors to build AI models. Last quarter, Nvidia's database revenue rose by 427% over the previous year's revenue, $22.6 billion, accounting for about 86% of the company's total sales.
Founded in 1991, Nvidia was originally a hardware company that sold computer chips to gamers, and also engaged in cryptocurrency mining and gaming. But over the past two years, Nvidia's stock has soared as Wall Street recognized the company's technology as an AI engine. This is also how the value of NVIDIA's Founder and President Jensen Huang, increased and he became the 11th richest person in the world, according to Forbes.
NVIDIA's rise was so fast that it has not yet been added to the Dow Jones Industrial Average.