Nvidia is officially the most-valuable company in the world. The chip maker has surpassed Microsoft becoming the world’s most valuable company by market cap. It added $3 trillion in market cap over the last 20 months. This is the first time the company has held this position.
The sudden stock rise is heavily driven by the recent demand for AI. The company’s valuation hit $1 trillion just last year. In February, valuation was $ 2 trillion and now it has reached $ 3 trillion.
Since August of 2022, NVIDIA has been producing AI chips. Owing to the increased popularity of AI, the company began witnessing a steep demand for chips as early as January 2023. Most AI applications today are running on Nvidia chips. ChatGPT, the chatbot that kicked off the AI fever is one of them.
Other major tech companies soon followed by making NVIDIA their chip supplier in the AI race. Google, AWS and Microsoft Azure become one the first cloud providers to offer NVIDIA’s next-generation Blackwell GPU to customers.
