The AI era is completely transforming the tech industry from its foundations. Companies that have not adapted are lagging behind, while those with the foresight to join the trend are experiencing exponential growth. Nvidia is among the latter, having made an early entry into a rapidly expanding segment. Now, Nvidia is about to claim once again the title of the most valuable company in the world.
Nvidia’s stock growth puts it on track to take the title of most valuable company soon
This is not the first time that Nvidia has achieved such a milestone. The company had already managed to surpass big names in the industry, such as Apple and Microsoft. However, this victory was fleeting, as both Apple and Microsoft eventually overtook it once more. Now, a recent surge in Nvidia shares to an all-time high of $138.07 could soon turn the tables.
Following the recent rise in Nvidia shares, the company also surpasses another milestone: reaching a market capitalization of around $3.4 trillion. This also makes it one of only three companies to have surpassed this valuation. Currently, only Apple surpasses it with a market cap of $3.55 trillion.
Early entry into AI terrain was key
The AI boom began with the availability of the ChatGPT preview version. The chatbot’s impressive “reasoning” capabilities led the entire industry to turn its attention to artificial intelligence. Well, Nvidia was there from the start, as the service ran on the company’s hardware. Since then, all major companies that have wanted to catch up in the segment have turned to the company’s AI chips. The list includes Microsoft, Meta, Google, and Amazon. Nvidia quickly positioned itself as the leading supplier of AI hardware.
As a result, the company’s stock shows an incredible growth of 2,800.6% over the past five years. Furthermore, 2024 brought a year-over-year growth of the stock price by 186.6%. The growth trend is not expected to stop, as companies demand increasingly powerful and efficient AI hardware. Currently, Nvidia is working on the next generation of AI chips, known as “Blackwell.” The brand publicly stated that the current lawsuit by Blackwell is “insane,” so they expect to receive billions of dollars in revenue by the end of this year alone.