Nvidia Surpasses Microsoft to Claim Title of Second Most Valuable Company Worldwide

Nvidia’s stock value has surged once more, surpassing Microsoft and positioning itself as the world’s second most valuable corporation, now only trailing behind Apple. As of today, Nvidia’s market capitalization stands at approximately $3.26 trillion, compared to Microsoft’s valuation of around $3.09 trillion.

The impressive rise in Nvidia’s fortunes can be attributed to the escalating demand for technologies linked to artificial intelligence. In its latest financial report, Nvidia announced a revenue of $30 billion for its second fiscal quarter, reflecting a staggering 152% growth in contrast to the same quarter last year. Major firms like Microsoft and Amazon continue to pour investments into AI innovations, significantly boosting the demand for Nvidia’s chips. This surge in demand is a pivotal reason behind the remarkable ascension of Nvidia’s stock, which has increased by about 173% throughout 2023.

Earlier this year, Nvidia had momentarily overtaken Apple, reaching the status of the world’s second most valuable firm right behind Microsoft, marking its first time exceeding the $3 trillion threshold.

Nvidia is also positioning itself for sustained growth in the future. The company has announced a keynote presentation during CES 2025, set for January 6, where CEO Jensen Huang is anticipated to reveal the next generation of desktop graphics cards, the RTX 50 series, which will be built on the Blackwell architecture.

Additionally, Huang has recently shown interest in adopting nuclear energy to power Nvidia’s data centers, as tech companies are actively seeking sustainable energy solutions to accommodate their growing power needs. It is estimated that electricity consumption in data centers could nearly double by 2026.

In a strategic move, Nvidia has established a partnership with Foxconn to construct the largest manufacturing plant for its forthcoming GB200 chips. This facility will focus on producing GPUs based on Nvidia’s Blackwell platform. Furthermore, Nvidia and Foxconn are collaborating to develop Taiwan’s largest supercomputer, named the Hon Hai Kaohsiung Super Computing Center, which will also utilize the Blackwell architecture and is projected to achieve more than 90 exaflops of performance.

Via CNBC | Image credit to DepositPhotos.com

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