- Nvidia briefly became the first company to reach an assessment of $ 4 billion
- The income of the data center and the AI form a large part of Nvidia’s success
- Despite the brief fall, it is still the most valuable company in the world
After months fighting to become the most valuable company in the world, and briefly holding that title on several occasions, Nvidia has become the first company to reach an amazing market capitalization of $ 4 billion.
Although the value of the company has dropped slightly, only $ 3,972 billion at the time of writing, it is still the most valuable company in the world ahead of Microsoft and Apple, the only two other companies that have passed the coveted $ 3 billion brand.
Although fluctuations continue to see the three companies changing positions, Nvidia continues to see strong growth due to the continuous demand of AI chips.
Nvidia becomes the first $ 4 billion company in the world
Much of the success of Nvidia can be attributed to the launch of Chatgpt in November 2022, since its actions have increased more than 15 times in the last five years as a result of the demand for AI.
More recently, Nvidia shares rose 15% month to month and 22% in the year to date.
The news comes in the year after Nvidia reached the valuations of $ 2 billion (February 2024) and $ 3 billion (June 2024).
Internally, Nvidia’s profits also continue to grow, with the revenues of the first quarter they increase by 12% quarter to quarter and 69% health year after year. The company also revealed that the income of the data center also increased by 73% compared to last year, which represents more than 88% of the company’s total income.
“The overall demand for NVIDIA’s infrastructure is incredibly strong. The generation of the inference token of AI has increased ten times in just one year, already measure that AI agents become the mainstream, the demand for computing AI will accelerate,” explained the CEO Jensen Huang.
This marks a deviation from the past of Nvidia, when he was known for his game GPU. Since Nvidia shares are worth only 1% of what is worth today eight years ago, it is not clear how much more growth the company could experience.
