Nvidia’s rapid rise to become the world’s most valuable company has been fueled by the high demand for its high-end processors. The chipmaker has overtaken Microsoft and Apple in market value, with its stock soaring 173% this year compared to Microsoft’s 19% rise.
The demand for Nvidia’s chips is surpassing supply, leading to a competitive race among tech giants like Microsoft, Meta Platforms, and Google-owner Alphabet to enhance their AI computing capabilities. However, Nvidia currently holds over 80% of the market share for AI chips, positioning itself as a major beneficiary of the growing AI development trend.
One of the factors contributing to Nvidia’s success is its recent 10-for-one stock split. This move made its shares more appealing to individual investors, and helped expand its market value from $1 trillion to $3 trillion in just nine months. The company hit the $2 trillion milestone in February and reached $3 trillion in early June.