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Nvidia's AI Chips Propel Surge, Closing in on Apple as Second Most Valuable Company

May 31, 2024 - techtimes.com
Nvidia, a leading semiconductor company, is on the verge of surpassing Apple as the world's second-most valuable company, driven by the widespread adoption of its high-end chips in artificial intelligence (AI) applications. Over the past year, Nvidia's stock has nearly tripled, pushing its market valuation to $2.72 trillion, nearing Apple's $2.93 trillion. The company's rapid growth is attributed to its significant influence in the US stock markets, with heavy weighting in the S&P 500 and the Nasdaq.

Nvidia's rise is primarily fueled by its crucial role in the AI sector, with its GPUs integral to AI applications. The company's financial performance has been exceptional, with $26 billion in sales and earnings per share (EPS) of $6.12 in the three months ending April 30. Nvidia's data center division, focusing on AI-intensive applications, generated $22.6 billion in revenue last quarter, a 427% increase year-over-year. The company also became the fastest to grow from $1 trillion to $2 trillion in 2024, outpacing tech giants like Amazon and Google.

Key takeaways:

  • Nvidia is nearing Apple's market value of $2.93 trillion, with its own value at $2.72 trillion, driven by the adoption of its high-end chips in AI applications and data centers.
  • Nvidia's rapid growth is largely due to its significant role in the AI sector, with its GPUs being integral to the functionality of AI applications.
  • Nvidia's data center division, focusing on AI-intensive applications, generated $22.6 billion in revenue last quarter, a 427% increase year-over-year.
  • Nvidia became the fastest company to grow from $1 trillion to $2 trillion in 2024, outpacing tech giants like Amazon and Google.
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