A few years ago, the name of this company might have been more widely known, primarily to computer gamers. Nvidia produced graphics cards and did well in this market, but it was nothing compared to what happened after the explosion of interest in generative artificial intelligence.
Nvidia like a battering ram. First it swallowed Apple, now Microsoft
On Tuesday, Nvidia’s shares rose by more than 3.5% on Wall Street, which means that the market value (of all shares outstanding) of this company increased to $3.34 trillion. This was enough to overtake Microsoft with a valuation of $3.32 trillion. and Nvidia became the most valuable listed company in the world. A moment earlier, it published r, beating market expectations. It crossed the $2 trillion mark just in February, and the first trillion broke just over a year ago. By the way: both Apple and Microsoft closed Tuesday’s session on Wall Street in the red.
Nvidia is going like a battering ram on the stock exchange. This year, the price has increased by over 170%. (Microsoft by 19%), nine times since the end of 2022, and by 591,078 percent since the debut on the Nasdaq technology exchange in 1999. The price of one Nvidia share is now $135.58. Just eight years ago, the value of such a share was only 1%. its current value.
Artificial intelligence is increasing the ratings
Why is this happening? Nvidia has focused on microchips used in artificial intelligence technologies, it is their largest producer and recently it has been constantly announcing new, even more modern generations of such semiconductors. The boom in generative artificial intelligence (i.e. the one that creates new content – texts, images, videos) is fueling huge interest in Nvidia’s products. The largest ones buy from it – Meta, Alphabet, Amazon, Microsoft and OpenAI. And the largest ones compete with each other by developing their products using artificial intelligence. The global economy is starting to change as a result. “A new industrial revolution has begun” – this is how the head of Nvidia described what is happening around artificial intelligence. This also fuels investor enthusiasm, as seen in the sharp increase in Nvidia’s stock prices.
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Source: Gazeta
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
