AI frenzy makes Nvidia the world’s most valuable company

Chip maker Nvidia has been named the world’s most profitable company when its stock price reached an record-setting new record on Tuesday.

It’s now priced at $3.34tn (PS2.63tn) and the price nearly doubling since the beginning of this year.

The stock finished the day trading at $136, which is up 3.5 percent, which makes the stock more expensive than technology giant Microsoft. It was able to surpass Apple earlier in the month.

The Californian company’s rapid growth is fueled by its dominance in what analysts refer to as”the “new gold or oil in the tech sector” the chips that are the chips required for AI. (AI).

At an event held in Copenhagen, Chris Penrose, the global director of business development for the telco company Nvidia forecasted further growth in the industry.

“The generative AI journey is really transforming businesses and telcos around the world,” he added.

“We’re just at the beginning.”

Analysts from Wedbush Securities were in agreement.

“We believe over the next year the race to $4 trillion market cap in tech will be front and centre between Nvidia, Apple, and Microsoft,” it declared in a note earlier in the week.

Others have raised doubts whether there are any future gains given the competition that Nvidia has to face.

Rise and rise

What is certain however is how dramatically it has increased.

A decade ago the price was less than one percent of the current value.

The value of Nvidia back then was derived from its rivalry with AMD, a rival AMD in the race to create the most powerful graphics cards.

In recent times, it has seen the booming the demand for chips which train and run in-built AI models, one of the most famous of them is OpenAI’s ChatGPT.

The company also gained from the rush in the mining of Bitcoin in 2020, which led to a significant increase in the graphic cards sales.

The growth and expansion of this tech company has been amplified by the increasing public profile of its CEO, Jensen Huang.

Meta manager Mark Zuckerberg even called the electrical engineer, 61, who is famous for his leather jacket as the “Taylor Swift of tech” due to the fame attained by him.

The singer has gained fame due in part due to his fame in his home country, Taiwan in which fans consider him an a-lister photo-shooting him, and having him sign his body parts.

The competition between AI developers is a raging battle. Microsoft and Google, as well as Google’s owner Alphabet, Meta and Apple are only a few of the major tech companies fighting to develop a world-class product.

This is a benefit to Nvidia and Nvidia, along with the development of AI technology that is its own, controls the part of the AI chips market.

The profits and sales of Nvidia have been higher than many analyst estimates in recent years.

In May, when its most recent set of financials was announced, Quilter Cheviot technology analyst Ben Barringer said the company had “once again cleared a very high hurdle”.

“Demand is showing no signs of switching off either,” the source added.

However, some are more cautious.

Then in February Barclays credit analyst Sandeep Gupta stated that Nvidia’s huge market share could be difficult to sustain given the growing number of competitors. He also questioned the way Nvidia’s customers could make money from AI software.