Nvidia Surpasses Microsoft and Apple to Become Most Valuable Public Company in the World
Nvidia, a leading producer of computer chips, has achieved a remarkable feat by becoming the most valuable public company in the world. With a current market value of $3.3tn (£2.6tn), the company has surpassed giants like Microsoft and Apple, with its share price rising by an astounding 600,000% since it first traded on the US stock market in 1999.
If an individual had invested $10,000 (£7,850) in Nvidia back in 1999, their stock would now be worth over $59m (£46m). This has also resulted in the company’s co-founder and chief executive, Jensen Huang, seeing his net worth skyrocket to a staggering $119bn (£93bn), according to Forbes.
Nvidia’s success can be attributed to its involvement with major tech brands, including Google, Amazon, Tesla, and ChatGPT. The company was founded in 1993 by Huang and his two friends, Chris Malachowsky and Curtis Priem, all engineering graduates. Their initial focus was on creating a computer chip that could enhance the display of 3D graphics on PCs.
The company’s name, Nvidia, was derived from combining NV, which stands for “next version,” with “Invidia,” the Latin word for envy. The founders’ goal was to outpace their competitors and leave them envious, which is also reflected in the company’s logo featuring an envious “green” eye.
In the 1990s, the computer chip market was dominated by companies like Intel, a major producer of central processing units (CPUs). However, Nvidia carved out a niche for itself by specializing in graphics processing units (GPUs), which are crucial in rendering images for computer games.
Nvidia’s early success can be attributed to its popular graphics card, GeForce, which could be plugged into a PC to increase its power. The company achieved another milestone when it became the exclusive graphics provider for Microsoft’s first Xbox games console in 2000.
As the company’s engineers realized the potential of their GPUs in performing advanced computations, Nvidia began marketing its products to other tech firms. In the 2010s, the company ventured into artificial intelligence (AI) and secured partnerships with major car companies like Tesla, which now uses Nvidia’s hardware in all its vehicles.
Nvidia’s early investment in AI has paid off, with the company’s chips being used by almost every major tech company in Silicon Valley, including Amazon, Google, Meta, and Microsoft. It is estimated that Nvidia controls over 80% of the market for AI systems.
The company’s success has only accelerated in recent months, with its market valuation reaching $2tn in February and surpassing Apple for the number two spot earlier this month. Nvidia finally clinched the top spot on Tuesday after its market value increased by over $100bn (£79bn) in a single day.
While Nvidia’s demand currently outstrips supply, its position at the top is likely to be challenged in the future as companies like Microsoft invest heavily in AI to catch up. Nevertheless, Nvidia’s journey to becoming the king of the stock market has been an impressive one, with the company overcoming challenges and making strategic investments to secure its position as a leading player in the tech industry.