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Nvidia on Track to Become Second-Most Valuable Company

May 31, 2024 - pymnts.com
Nvidia, a leading chip maker, is reportedly set to become the world's second-most valuable company, potentially surpassing Apple. This is largely due to its significant role in the artificial intelligence (AI) market, as it provides the chips that power almost all AI applications. The company's stock has nearly tripled in value over the past year to $2.68 trillion, contributing to record highs in U.S. stocks and accounting for over a third of the S&P 500's gains this year.

Nvidia's growth has been fueled by the demand for generative AI training and inference across various industries. The company's recent earnings report showed a revenue of $26 billion, an 18% increase from the previous quarter and a 262% increase from the same period last year. The revenue of Nvidia’s Data Center business unit also rose significantly. Nvidia's value has already surpassed that of Amazon, Alphabet, and Saudi Aramco in 2024.

Key takeaways:

  • Nvidia's role in the AI market could reportedly make it the world's second-most valuable company, overtaking Apple and only behind Microsoft.
  • The company's growth has been driven by its status as the provider of the chips that power virtually all AI applications.
  • Nvidia's stock has nearly tripled in value over the past year to $2.68 trillion, accounting for more than a third of the gains made by the S&P 500 this year.
  • The company's earnings, reported May 22, showcased the ongoing strength of the AI boom, with its revenue reaching $26 billion, up 18% from the previous quarter and 262% from the same period last year.
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