Nvidia surpasses $4 trillion valuation, becomes world's most valuable company

Nvidia has surpassed Microsoft, Apple, Amazon, and Alphabet to become the world's most valuable company, with a market value of over $4 trillion. The chipmaker's shares rose 2.5% to $164 each, and its earnings per share increased 26% to $18.8 billion, with revenue surging 69% to $44.1 billion. Nvidia's AI-focused business has driven its success, and the company is expected to report another quarter of record sales and profit next month.

Nvidia has achieved a significant milestone, surpassing Microsoft, Apple, Amazon, and Alphabet to become the world's most valuable company, with a market value exceeding $4 trillion. This remarkable feat was announced on Wednesday, July 9, 2023, and was driven by a 2.5% increase in the company's stock price, reaching a record high of $164 per share [1].

The company's impressive growth is largely attributed to its dominance in the AI sector. Nvidia's AI-focused business has been a key driver of its success, with the company's earnings per share increasing by 26% to $18.8 billion, and revenue surging by 69% to $44.1 billion in the first quarter of 2023 [2]. This performance has cemented Nvidia's position as the leading supplier of hardware and software for AI training and inference.

Nvidia's stock rally comes after a challenging start to the year, marked by market fluctuations and the impact of DeepSeek’s Chinese AI model. However, the company has demonstrated remarkable resilience, recovering from the setback and rising about 74% since its low in April [2]. The company is expected to report another quarter of record sales and profit next month.

The rapid growth of Nvidia's market capitalization underscores the unique position it holds in the high-tech ecosystem. The company supplies AI GPUs to virtually all major AI leaders, including Microsoft, Amazon, Alphabet, Meta, OpenAI, and xAI [1]. This strong market position is expected to continue, driven by the ongoing growth of the AI sector and Nvidia's leading technology in AI hardware.

Nvidia's ability to sustain its leading position in the market is further bolstered by the anticipation of trade deals between the U.S. and key partners, which will help the company supply its products to growing markets such as the Middle East and Europe [1]. This will help offset the company's current inability to supply high-performance AI GPUs to China.

Nvidia's journey to becoming the world's most valuable company highlights the transformative impact of AI technology on the tech industry. As the demand for AI continues to grow, Nvidia's position as a key player in the AI ecosystem is likely to remain strong.

References:
[1] https://www.tomshardware.com/pc-components/gpus/nvidia-is-the-first-company-to-reach-usd4-trillion-market-capitalization-crosses-milestone-briefly-on-july-9
[2] https://www.techzine.eu/news/infrastructure/132925/nvidia-reaches-milestone-of-4-trillion-market-value/