Nvidia becomes the most valuable public company

Nvidia became the world's most valuable company on Tuesday. The American chipmaker's stock shares climbed 3.6% to a total market cap of $3.34 trillion, surpassing Microsoft and Apple.

The company increased its stock share prices by 170% so far in 2024, a huge bump that followed a positive first-quarter report earlier this year. The stock has multiplied ninefold since the end of 2022, a rise that coincides with the spike of generative AI popularity.

Nvidia has about 80% of the market for AI chips used in data centers, and this is a pivotal business for OpenAI, Microsoft, Alphabet, Amazon, Meta, and others, commented CNBC.

The quarterly report revealed revenue in Nvidia's data center business rose 427% from a year earlier, accounting for about 86% of total sales.

Nvidia is a company that has often been synonymous with graphics cards and chips for gamers to run the latest video game titles. The company tried to sell cryptocurrency mining chips and cloud gaming subscriptions but eventually found its new way in the world of AI.

Forbes recently reported that Nvidia co-founder and CEO Jensen Huang is now the 11th wealthiest person in the world, with a net worth of $117 billion.

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