The global artificial intelligence boom has transformed several technology companies, but perhaps none more dramatically than Nvidia. Once known mainly for making gaming graphics cards, the American chipmaker has now become one of the world’s most valuable companies, with a market valuation that has surpassed the entire stock market value of India.
Nvidia’s market capitalisation currently stands at around $5.05 trillion, slightly ahead of India’s total equity market valuation of nearly $5 trillion.
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Nvidia’s rise over the past few years has been virtually unprecedented. In 2023, the company’s market cap was approximately $1.01 trillion. In less than three years, that value has increased nearly five-fold.
During this period, Nvidia’s share price has also seen tremendous growth. Where previously this company’s share price was below $50, it has now risen to $211.50. This represents approximately a 323 percent increase in this company’s share price.
AI demand has turned Nvidia into the backbone of global computing
According to experts, due to the rapid growth of AI technology, Nvidia has become one of the world’s most powerful technology companies so quickly. Currently, major technology companies, cloud service providers, and various countries are using GPU chips to create AI models. Nvidia controls approximately 80 percent of this type of chip market.
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Harshal Dasani, Business Head of INVasset PMS, has stated that GPU has currently become the most important infrastructure for AI technology. And Nvidia has the biggest control of that market. As a result, they are receiving the maximum financial benefits from this technological transformation.
Due to AI, the market value of several other technology companies worldwide has rapidly increased. Alphabet and Apple have recently reached close to $4 trillion in market capitalization. Microsoft’s market value is more than $3 trillion. Similarly, companies like Amazon, Broadcom, TSMC, Meta, Tesla, and Samsung have market values exceeding $1 trillion.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
