Nvidia Surpasses Microsoft to Become the World's Most Valuable Company

Nvidia has emerged as the most valuable company globally, with its market capitalization soaring to $3.34 trillion, surpassing Microsoft, which stands at $3.32 trillion. As of June 18, Nvidia's shares closed at $136 each, reflecting a 3.5% increase. Since the start of 2024, Nvidia's stock has skyrocketed by over 170%. Just a year ago, shares were trading at $43.05 with a trading volume of 55 million. Following a recent 10-for-one stock split, Nvidia now offers 294 million shares, and investors are eager to acquire stakes in this rapidly ascending company.

The enthusiasm surrounding Nvidia's stock is fueled by the announcement of a new yearly release schedule for its GPUs, including updated versions of its Blackwell chips and the introduction of the new Rubin chips. Founded in 1993, Nvidia initially focused on creating PC chips for video game graphics. Fast forward three decades, and the company has pivoted to specialize in the hardware needed for powering AI workloads, with major global companies relying on its GPUs for their AI initiatives. The demand for these chips has been remarkable—Nvidia shipped an astonishing 900 tons of AI chips in just one quarter of 2023.

This stock surge also significantly impacts the net worth of Nvidia's founder and CEO, Jensen Huang. Huang holds a 3% stake in the company and has plans to divest up to 600,000 common stock shares by March 2025, according to recent securities filings. As Nvidia's stock continues its upward momentum, his ownership stake could be valued at around $119 billion, positioning him closely to the $123 billion fortune of former Microsoft CEO Steve Ballmer, solidifying his status among the world's wealthiest individuals.

The market landscape for the most valuable companies has experienced notable fluctuations in recent weeks. Nvidia briefly held the number two spot before Apple’s share prices surged in response to exciting AI announcements made during its recent Worldwide Developer Conference.

A stockholder meeting is scheduled for June 26, where Huang stated that 2024 is anticipated to be a “watershed moment” for the company. He expressed expectations for groundbreaking technological advancements stemming from next-generation large language models (LLMs) and generative AI across diverse sectors, from digital biology to robotics. “You’ll want to see what’s coming,” Huang remarked, hinting at the exciting developments on the horizon.