Microsoft surpassed by Nvidia as most valuable public company.

• Since the end of 2022, Nvidia has experienced a more than nine-fold increase in value, making it the most valuable public company, surpassing Microsoft.
• In early June, the chipmaker surpassed the $3 trillion market cap mark, becoming part of the exclusive club alongside Microsoft and Apple.
• The recent surge in generative artificial intelligence has mainly benefited Nvidia.

The graphics chip company, well-established in the niche gaming community, has become the most valuable public company globally.

On Tuesday, Nvidia's shares rose 3.2% in mid-day trading, increasing the company's market cap to $3.33 trillion, surpassing . This came after Nvidia hit a $3 trillion market cap earlier this month and surpassed .

Nvidia shares have experienced a more than 170% increase in value this year, with a significant jump following the release of the company's first-quarter earnings in May. Since the end of 2022, the stock has multiplied by more than nine times, coinciding with the growth of generative artificial intelligence.

Nvidia holds approximately 80% of the market for AI chips utilized in data centers, which has experienced significant growth due to the increasing demand for these processors as companies such as OpenAI, Microsoft, and others compete to acquire them for building AI models and running large-scale workloads.

In the most recent quarter, Nvidia's data center business experienced a 427% increase in revenue from the previous year, which amounted to $22.6 billion. This represented approximately 86% of the company's total sales.

Since its establishment in 1991, Nvidia has primarily focused on selling hardware chips for gamers to run 3D games. Additionally, the company has ventured into the production of cryptocurrency mining chips and cloud gaming subscriptions.

Over the past two years, Nvidia shares have experienced a significant increase as Wall Street recognized the company's technology as the driving force behind the rapid growth of AI. This surge has boosted co-founder and CEO Jensen Huang's net worth to approximately $117 billion, placing him among the top 11 wealthiest individuals in the world, according to Forbes.

Microsoft's stock has increased by approximately 20% this year. Additionally, the company has benefited from the AI boom by investing in OpenAI and integrating its AI models into its products, such as Office and Windows. Microsoft is also a significant buyer of Nvidia's GPUs for its Azure cloud service. Recently, the company released new laptops designed to run its AI models, called Copilot+.

For the past few years, Microsoft and Apple have been trading the title of the most valuable U.S. company. Now, Nvidia has joined the race.

Nvidia's growth has been swift, and the company has not yet been included in the Dow Jones Industrial Average, a measure of the 30 largest and most valuable U.S. corporations. Following its earnings report in December, Nvidia announced a 10-for-1 stock split, which took effect on January 7th.

The Dow's price-weighted index structure gives Nvidia a better chance of being included, as companies with higher stock prices have a greater impact on the benchmark.

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