Nvidia"s stock has risen again, going past Microsoft to make it the world"s second most valuable company, just behind Apple. Today, Nvidia"s market value reached about $3.26 trillion, while Microsoft"s was around $3.09 trillion.
The reason for Nvidia"s success is the growing demand for artificial intelligence-related tech. Recently, Nvidia reported a revenue of $30 billion for its second fiscal quarter, which marks a 152% increase compared to the same time last year. As companies like Microsoft, Amazon, and others are continuing to invest in AI technologies, the demand for Nvidia"s chips has also skyrocketed. This is also a key reason why Nvidia"s stock has soared. Nvidia"s stock has risen by about 173% in 2023 alone.
Earlier this year, Nvidia had briefly surpassed Apple to become the second most valuable company in the world, just behind Microsoft at that time, when it crossed the $3 trillion mark for the first time.
The company is also making itself ready for future growth. Nvidia has scheduled a keynote at CES 2025 on January 6, where CEO Jensen Huang is expected to unveil newer desktop graphics cards, the RTX 50 series,based on the Blackwell architecture.
Huang had also recently expressed interest in using nuclear energy to power Nvidia"s data centers, as tech companies are seeking renewable energy sources to meet their increasing power demand. Data center electricity consumption is projected to nearly double by 2026.
Nvidia has also partnered up with Foxconn to build the world"s largest manufacturing facility for Nvidia"s upcoming GB200 chips. The facility will focus on producing the GPUs from Nvidia"s Blackwell platform. Nvidia and Foxconn are also working together to create Taiwan"s largest supercomputer, called the Hon Hai Kaohsiung Super Computing Center, which will utilize the same Blackwell architecture and is expected to achieve over 90 exaflops of performance.
Via CNBC | Image via DepositPhotos.com