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Nvidia's AI Bet Pays off as It Is Now the World's Largest Company Valued at $3.43 Trillion

Nov 06, 2024 - techtimes.com
Nvidia, the American multinational tech corporation known for its GPUs, has become the world's largest company with a valuation of $3.73 trillion, surpassing Apple. This surge in valuation is attributed to Nvidia's focus on artificial intelligence (AI), including its foundational model and GPUs that support companies' models. Despite a competitive relationship with Apple, Nvidia's recent growth of 850 percent since late 2022 has been significant, largely due to advancements in technology.

Nvidia's success is largely due to its focus on AI, developing AI chips and GPUs for many brands and clients, and a large language model available for partners. Companies like Tesla and xAI use Nvidia's AI chips for running and developing models. Nvidia's shift to AI has resulted in a 628 percent increase in profits and a 268 percent revenue growth, leading to a four percent jump in stocks and $6.12 earnings per share. The company plans to deliver one new AI chip per year to further promote artificial intelligence.

Key takeaways:

  • Nvidia is now the world's largest company with a valuation of $3.73 trillion, surpassing Apple which is currently valued at $3.38 trillion.
  • The company's rise to the top is largely credited to its focus on artificial intelligence (AI), including the development of AI chips and GPUs.
  • Nvidia's large language model (LLM) is used by top AI companies, and the company promises to deliver one new chip per year.
  • Earlier this year, Nvidia saw a 628 percent increase in its profits and a 268 percent revenue growth, largely due to its focus on AI.
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