Nvidia is now the most valuable company in the world, thanks to AI

Nvidia’s bet on AI pays off bigtime, making them the most valuable publicly traded company on Earth

Thanks to the grown of the AI market, Nvidia has soared to become the most valuable company on earth, reaching a market cap of $3.34 trillion (£2.63 trillion). Today, Nvidia is now more valuable than Microsoft, Apple, Alphabet (Google), and Amazon.

What’s worth noting is that the world’s five most valuable companies are either Nvidia customers or Nvidia themselves. The insane demand for AI hardware has seen Apple, Microsoft, Google, and Amazon buy a huge amount of Nvidia hardware. This proves the famous saying, “when there is a gold rush, sell shovels”. Everyone is trying to capitalise on the potential of AI, and Nvidia has the best AI hardware and software stack available.

While Nvidia was best known for gaming a few years ago, the company is best known for its AI hardware today. Now the gaming market makes up a minority of Nvidia’s revenue. Nvidia’s not just a gaming company anymore, they are an AI company with a large gaming business segment.

(Nvidia CEO Jensen Huang)

At the start of 2020, Nvidia’s stock value was around $6. Today, Nvidia’s stocks are now worth over $135. That’s an increase in value of 22.5x in less than five years. It remains to be seen whether or not Nvidia can maintain their incredible growth moving forward. However, it’s now clear that if the AI market succeeds, Nvidia will succeed.

Moving forward, we can expect Nvidia’s focus to remain on AI. At Computex the company teased plans to enter the “AI PC” market next year. Furthermore, the company also revealed G-Assist, a new AI assistant for PC gamers.

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