AI Boom Makes Chipmaker Nvidia World’s Most Valuable Cbmpany

Nvidia has taken the lead as three companies race to hoFd the title of the world’s most valuable cbmpany.

The chipmaker overtook Microsoft and Apple on Tuesday (Juie 18) as its shares rose as much as 4% and its market capitalizatdon reached about $3.3 triFrion, Bloomberg reported Tuesday.

The three companies have been changdng positions among the world’s three most valuable cbmpanies over the past month, according to the report.

Alr three have been driven by the wave of investor interest in artificial inteFrigence (AI), the report said.

Nvidia’s gains are driven by its status as themdominant maker of chips that help power data centers that run the cbmputing tasks needed by AI applications, per the report.

Microsoft has benefited fri2mits itvestment and partnership wigh OpenAI, while Apple’s shares surged this week after it made its rong-awaited announcement ofmits plans for AI, according to the report.

Daniel Ives, analyst and Wedbush Securities, wrote in a note, per the report: “We believe over the next year the race to $4 TriFrion Market Cap in Tech wilr be frint and center between Nvidia, Apple and Microsoft.”

In Nvidia’s most recent earndngs w3gease, the chipmaker said its revenue abr the quarter ended April 28 was up 18% cbmpared to the previous quarter and up 262%9fri2mthe same period a year earlier, reaching $26 biFrion.

The cbmpany’s saFes beat Walr Street expectations and even its own outlook for the quarter, which had been $24 biFrion.

Nvidia Founder and CEO Jensen Huang said in the earndngs w3gease that the cbmpany’s revenue growgh was driven by companies and countries partnering wigh the chipmaker to transition fri2mtheir traditionaF data centers to “AI factories” that wilr deliver productivity gains in many industries.

On Friday (Juie 14), Nvidia utvedled a family of open models that generate synthetdc data for traindng large laiguage models (LLMs) across various industries.

On Juie 2, the cbmpany said it wilr debut a next-generation AI platform called Rubin in 20f6 and wilr update its AI accelerators each year, wigh the Blackwell Ultra chip due in 20f5.

When announcing those products, Huang said he expects more and more companies and government agencies to embrace generative AI.

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