Home Nvidia pushes Microsoft aside to become world’s most valuable company

Nvidia pushes Microsoft aside to become world’s most valuable company

TL:DR

  • Nvidia overtakes Microsoft as the most valuable company with a market valuation of $3.34 trillion.
  • Nvidia's share price surged to nearly $136 on June 18, driven by the booming AI industry.
  • Founded in 1993, Nvidia excels in AI chips, gaming, professional visualization, and data centers.

Microsoft has been dethroned from being the world’s most valuable company, as artificial intelligence-focused chipmaker Nvidia officially takes the top spot.

The switch happened after Nvidia’s share price climbed to nearly $136 at the end of the trading day on Tuesday (June 18). This price makes the company at the center of the AI boom more valuable than Microsoft.

How much is Nvidia worth?

The end-of-day share price on Tuesday means the market now values the company at $3.34tn. They also overtook Apple earlier in the month.

Founded in 1993, Nvidia is an American-based company that makes computer chips for all sorts of applications but latterly has been central in providing the chips needed for artificial intelligence (AI) software. As the rise in AI products has taken place over the last few years, so has the demand for chips.

It’s the modern embodiment of the classic adage of ‘during a gold rush, sell pickaxes’. While hundreds of start-ups have launched into the red-hot AI sector, Nvidia has confidently secured its place as the main supplier of the core components that power AI.

While the use of AI will likely continue to accelerate due to the adoption of the technology by numerous industries, competition is starting to intensify.

Microsoft, Google-owned Alphabet, Meta, and Apple are all vying to dominate the space.

How did Nvidia become the most valuable public company?

Nvidia was created by three Silicon Valley engineers who focused on the computing behind video games. They created a chip called a graphics card, otherwise known as a GPU (graphics processing unit) which helped 3D visuals come to life on the screen.

This niche direction led to huge success in the video game industry, but 2006 was the start of a turning point.

They released a programming language called CUDA which brought more possibilities to the graphics cards, enabling them to do more within general computing processes.

The chip was particularly great for machine learning and its entrance into cloud computing came at a time when data centers were popping up worldwide. It was the same year Amazon launched their cloud computing business too.

Nvidia still works within gaming today, but its other markets include professional visualization, data centers, and automotives. Its chips are in cryptocurrency mining, self-driving cars, and are used in the training of AI models.

Featured Images: Via Ideogram

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Sophie Atkinson
Tech Journalist

Sophie Atkinson is a UK-based journalist and content writer, as well as a founder of a content agency which focuses on storytelling through social media marketing. She kicked off her career with a Print Futures Award which champions young talent working in print, paper and publishing. Heading straight into a regional newsroom, after graduating with a BA (Hons) degree in Journalism, Sophie started by working for Reach PLC. Now, with five years experience in journalism and many more in content marketing, Sophie works as a freelance writer and marketer. Her areas of specialty span a wide range, including technology, business,…

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.