
<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Chip designer and artificial intelligence juggernaut Nvidia narrowly topped Microsoft’s market capitalization Tuesday to become the world’s most valuable public company, less than two weeks after it <a href="https://www.forbes.com/sites/antoniopequenoiv/2024/06/05/nvidia-tops-apples-market-cap-becoming-the-worlds-2nd-most-valuable-company/">surpassed Apple’s market cap</a> following months of strong stock gains.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Nvidia shares traded up more than 3% Tuesday afternoon at around $135.65, while Microsoft traded down a fraction of a percent at $447.58.</p>



<p>The stock performances sent Nvidia’s market cap up to $3.33 trillion and Microsoft’s to $3.32 trillion.</p>



<p>Nvidia’s stock is up about 12% since its recent&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/06/10/nvidia-shares-now-trading-at-just-120-after-stock-split-in-wake-of-monstrous-run/">stock split</a>, which brought its price down from $1,210 per share to about $120 per share.</p>



<p>Nvidia began the year with a $1.2 trillion market value, less than half of Microsoft and Apple’s market cap at the time.</p>



<h2 class="wp-block-heading">BIG NUMBER</h2>



<p>177%. That’s how much Nvidia’s market cap has spiked since the start of the year, when shares traded at $48.17 (adjusted for stock split).</p>



<h2 class="wp-block-heading">FORBES VALUATION</h2>



<p>We estimate Nvidia CEO Jensen Huang’s net worth at <a href="https://www.forbes.com/profile/jensen-huang/">$118.8 billion</a>, making him the 11th-richest person in the world—the highest ranking he’s secured on Forbes’ <a href="https://www.forbes.com/real-time-billionaires/#13e2edb03d78">real-time billionaires list</a>.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Nvidia’s milestone comes amid an artificial intelligence craze that has made its chips and graphics processing units increasingly valuable to fellow tech companies like Microsoft, Meta, Amazon and Alphabet. Microsoft is estimated to make up 15% of Nvidia’s revenue, according to&nbsp;<a href="https://www.businessinsider.com/nvidia-stock-mystery-customer-microsoft-ubs-revenue-h100-gpu-chips-2024-5#:~:text=According%20to%20supply%20chain%20data,at%20about%206%25%20of%20revenue." rel="noreferrer noopener" target="_blank">Bloomberg</a>&nbsp;supply chain data, and Nvidia is estimated to control between 70% and 95% of the AI chip market,&nbsp;<a href="https://www.cnbc.com/2024/06/02/nvidia-dominates-the-ai-chip-market-but-theres-rising-competition-.html#:~:text=Nvidia%20dominates%20the%20AI%20chip%20market%2C%20but%20there's%20more%20competition%20than%20ever,-Published%20Sun%2C%20Jun&amp;text=Nvidia's%20AI%20accelerators%20have%20between,other%20chipmakers%20ramp%20up%20development." rel="noreferrer noopener" target="_blank">CNBC&nbsp;</a>reported, citing Mizuho Securities. Nvidia, which reported $8.4 billion in net income in its 2023 fiscal year, shows little to no signs of slowing down, as&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/06/15/can-apple-stock-go-much-higher-analysts-dont-think-so-heres-why/">analysts forecast</a>&nbsp;its net income to surpass Apple’s in just four years.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/06/10/nvidia-shares-now-trading-at-just-120-after-stock-split-in-wake-of-monstrous-run/">Nvidia Shares Now Trading At Just $120 After Stock Split In Wake Of Monstrous Run</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/antoniopequenoiv/2024/06/05/nvidia-tops-apples-market-cap-becoming-the-worlds-2nd-most-valuable-company/">Nvidia Tops Apple’s Market Cap, Becoming The World’s 2nd Most Valuable Company</a> (Forbes)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/06/15/can-apple-stock-go-much-higher-analysts-dont-think-so-heres-why/">Can Apple Stock Go Much Higher? Analysts Don&#8217;t Think So: Here&#8217;s Why</a> (Forbes)</p>


Nvidia’s Stock Price Hits Record High, As Analysts Increase Their Outlook On The Company

Nvidia Now World’s Most Valuable Company—Topping Microsoft And Apple


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Chip designer Nvidia surpassed Apple’s market capitalization Wednesday for the first time ever, becoming the 2nd most valuable company in the world after a year of <a href="https://www.forbes.com/sites/dereksaul/2024/06/05/nvidia-stock-hits-new-all-time-high-ahead-of-10-for-1-split/?sh=7f644c293eba">white-hot stock gains</a> charged by an artificial intelligence craze.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Nvidia’s market cap reached past Apple’s at market close and now boasts a whopping $3.012 trillion market cap compared to Apple’s $3.003 trillion.</p>



<p>Nvidia, which surpassed the likes of Amazon and Google earlier this year, still trails behind Microsoft’s market cap of $3.1 trillion.</p>



<p>The chip maker recorded its highest share price ever Wednesday, closing up more than 5% at $1,224.40 and continuing its gains in after-hours trading by a fraction of a percent.</p>



<p>Nvidia’s milestone comes after the company started the year with $1.2 trillion in market value, less than half of Apple’s $3 trillion market value at the time.</p>



<h2 class="wp-block-heading">BIG NUMBER</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/05/29/how-big-can-nvidia-get-as-it-threatens-apple-and-a-3-trillion-market-cap/?sh=2da415871284">80%</a>. That is the estimated share of semiconductor chips used to power generative AI technology that are designed by Nvidia, according to Goldman Sachs research.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Nvidia’s stock has more than doubled in price this year, trading up more than 147% since the start of January, when it traded around $481 per share. The chip maker’s success in the semiconductor market has been boiled down to its unique, fast-produced chips capable of powering artificial intelligence products. It has several big-name customers including Apple, Meta and Microsoft, the latter of which is estimated to account for&nbsp;<a href="https://finance.yahoo.com/news/single-customer-made-19-nvidias-143533924.html" rel="noreferrer noopener" target="_blank">15% of Nvidia’s revenue</a>. Nvidia’s lion’s share of AI-powering chips also gives it significant future earnings potential. The company’s stock will split 10-for-1 after market close on Friday, making its pricey stock&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/06/05/nvidia-stock-hits-new-all-time-high-ahead-of-10-for-1-split/?sh=7f644c293eba">far more accessible&nbsp;</a>for investors.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/06/05/sp-500-hits-record-high-after-apple-and-nvidia-join-3-trillion-market-cap-club/?sh=7f64251a204d">S&amp;P 500 Hits Record High After Apple And Nvidia Join $3 Trillion Market Cap Club</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/06/05/apple-stock-hits-3-trillion-valuation-as-ai-iphone-hype-builds/?sh=2ff438d85cb1">Apple Stock Hits $3 Trillion Valuation As AI iPhone Hype Builds</a> (Forbes)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/06/05/nvidia-stock-hits-new-all-time-high-ahead-of-10-for-1-split/?sh=7f644c293eba">Nvidia Stock Hits New All-Time High Ahead Of 10-For-1 Split</a> (Forbes)</p>


Tag: Nvidia

FORBES AFRICA SOCIAL MEDIA

Nvidia Now World’s Most Valuable Company—Topping Microsoft And Apple

Nvidia Tops Apple’s Market Cap, Becoming The World’s 2nd Most Valuable Company