Nvidia Surpasses Microsoft to Become World's Most Valuable Company After $185 Billion Surge
TL;DR:
- Nvidia is now the world's most valuable company, surpassing Microsoft.
- This surge is due to strong earnings and high demand for its AI technology.
- Nvidia's data center business is thriving, driven by AI.
- Global demand for AI infrastructure is boosting Nvidia's growth.
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| Photo: Nvidia |
Nvidia has overtaken Microsoft to become the world's most valuable publicly traded company, following a remarkable $185 billion increase in market capitalization overnight.
Company's shares opened nearly 6% higher on Thursday, elevating its total market value to approximately $3.48 trillion, surpassing Microsoft's $3.41 trillion.
This surge was driven by Nvidia's strong fiscal first-quarter earnings, reporting revenue of $44.06 billion, a 69% year-over-year increase.
Nvidia's data center business, fueled by high demand for AI technology, saw a 73% rise to $39.1 billion.
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| Nvidia Become World's Most Valuable Company |
Despite facing U.S. trade restrictions that barred sales of advanced AI chips to China, resulting in an estimated $8 billion revenue loss this quarter, Nvidia continues to thrive.
The hardware giant benefits from growing global demand, particularly from countries like India, Saudi Arabia, and the UAE, which are investing heavily in AI infrastructure.
Nvidia's ascent underscores the escalating demand for AI technologies and positions the company at the forefront of this rapidly evolving sector.
