Nvidia has achieved a historic milestone, surpassing Apple and Microsoft to become the world's most valuable company, with a market capitalization of $3.34 trillion. This remarkable rise is fueled by the booming artificial intelligence (AI) sector.
Nvidia's stock surged 3.5% to $135.58 per share, driven by news that it could secure a significant weighting in the technology select sector SPDR Fund (XLK) within the S&P 500. This potential inclusion could result in over $10 billion of Nvidia's shares being acquired by the ETF.
Since its 10-for-1 share split in early June, Nvidia's shares have climbed 12% and have soared approximately 170% year-to-date, outpacing Microsoft and Apple. The company's journey has been notable, with its shares increasing by approximately 591,000% since its initial public offering in 1999.
Nvidia's dominance in the AI chip market, holding around 80% of the market share, has been pivotal to its success. Its advanced Graphic Processing Units (GPUs) are crucial for supercomputing and generative AI training, which have seen its revenue nearly quadruple in the fiscal first quarter of 2025. Major tech giants, including Microsoft, Amazon, Meta Platforms, Alphabet, and OpenAI, rely on Nvidia's technology, contributing significantly to its data center revenue.
Looking ahead, Nvidia's new supercomputing AI GPU, Blackwell, is expected to drive future growth. CEO Jessen Huang has outlined plans to expand Nvidia's product offerings beyond cloud services, targeting sectors such as consumer internet, automotive, and healthcare.
Since joining the S&P 500 in 2001, Nvidia has experienced significant growth and weathered challenges, including the dot-com bubble and fluctuations in cryptocurrency mining. The introduction of CUDA, a parallel computing platform, has been instrumental in Nvidia's expansion into the data center market and its dominance in AI applications.
Despite setbacks, such as a 67% drop in its shares from their peak in 2021, Nvidia's strategic focus on AI technology has positioned it as a leader in the global tech industry. As AI continues to reshape various sectors, Nvidia's role and influence are set to grow further, solidifying its status as the forefront of innovation.
