As Nvidia’s stock price continues to soar, the company has now overtaken Microsoft to become the No. 1 most valuable company on Earth in terms of market capitalization.
Nvidia’s $3.33 trillion in market cap is just ahead of Microsoft ($3.32 trillion) and Apple ($3.27 trillion). Google parent company Alphabet ($2.169 trillion) and Amazon ($1.90 trillion) round out the top five.
Part of what’s led to Nvidia’s recent success on the stock market is companies buying up its chips under the belief that artificial intelligence will play a major role in the future of the world’s economy. Nvidia’s stock price has climbed by more than 200% in the past year. The 3.2% increase in Nvidia’s share price so far today, June 18, added more than $100 billion to the company’s total market cap.
Earlier in June, Nvidia conducted a 10:1 stock split that reduced the price per share, thus making shares more affordable. Nvidia’s stock price is sitting at around $135 as of this writing.
Some believe Nvidia still has a lot of growth ahead, with one analyst telling Bloomberg the company could reach a valuation of $5 trillion. Nvidia CEO Jensen Huang said earlier this month that generative AI could lead a new industrial revolution.
“Generative AI is reshaping industries and opening new opportunities for innovation and growth,” he said. “Today, we’re at the cusp of a major shift in computing. The intersection of AI and accelerated computing is set to redefine the future.”
While many in the business world are hyping generative AI, it remains to be seen if lawmakers could get involved to try to regulate the market amid concerns by experts that AI is an extinction-level concern.
In the video game industry, Microsoft is pushing hard on generative AI and is working with ChatGPT company OpenAI to help put AI into every product it makes, including Xbox. One of the many concerns around the proliferation of AI in video game development is how it could impact the people who make games. EA CEO Andrew Wilson spoke frankly on this subject recently, saying some jobs might be lost or displaced due to AI.
