NVIDIA Becomes The 3rd Largest Company Globally – Stock rises 28.58% in February

NVIDIA Corporation, a leading American semiconductor company renowned for its high-end graphics processing units (GPUs), has experienced a remarkable upsurge in its market value and global standing. This surge comes on the heels of the company’s stellar financial performance and growing demand for artificial intelligence (AI) infrastructure, propelling it to surpass industry giants and secure the coveted position of the world’s third-largest company by market capitalisation.

Unprecedented Market Surge

In the past month, NVIDIA’s stock has witnessed an unprecedented surge, culminating in a staggering 28.58% increase in February alone. This surge is indicative of the growing demand for AI infrastructure and the company’s ability to capitalize on this trend.

Notably, NVIDIA’s stock surged following its earnings report on February 21, reflecting the company’s robust financial performance and defying sceptics who anticipated a moderation in growth.

Nvidia experienced an initial surge in the first half of the month driven by sustained enthusiasm surrounding AI chips. Subsequently, following a brief period of retracement, the company witnessed a significant uptick in its stock price following the release of its earnings report on February 21.

The next day the stock opened at USD 750.20 and closed at USD 785.38, up by 16.40 %. Just in one day, the company has added USD 277 billion, which is the highest among any of the companies that have added in a day. Interestingly, Reliance Industries, the biggest company in India, has a total market capitalisation of approximately USD 0.227 trillion or 227 billion.

Read:- Nvidia vs Intel: A tale of two chipmakers in the age of AI

Market Capitalisation Milestone

As of March 5, 2024, NVIDIA’s overall market value reached around USD 2.13 trillion, showing a significant rise from its previous worth of about USD 1.93 trillion on February 22, representing an increase of approximately USD 200 billion in just 13 days.

This remarkable feat catapults NVIDIA into the esteemed position of the world’s third-largest company, surpassing the renowned Saudi Aramco. Such a milestone underscores NVIDIA’s pivotal role in driving technological innovation and its profound impact on the global economy.

Global Dominance in the Semiconductor Industry

NVIDIA’s ascent to the top echelons of the corporate world is emblematic of its dominance in the semiconductor industry. With a market capitalization exceeding USD 2 trillion, NVIDIA now stands shoulder to shoulder with industry titans like Microsoft and Apple, reaffirming its status as a key player in the technology landscape.

Moreover, NVIDIA’s stronghold in the GPU semiconductor market, commanding approximately 80% of the global market share, further solidifies its position as a leader in the industry.

Rise of AI Propelling Growth

The surge in NVIDIA’s market value is attributable to the rising demand for artificial intelligence (AI) infrastructure worldwide. As companies across various sectors increasingly integrate AI into their products and services, the demand for NVIDIA’s advanced GPU technology has witnessed exponential growth.

NVIDIA’s robust financial performance in the fourth quarter of 2023, with a staggering 769% year-over-year increase in net income and a 265% surge in revenue, underscores the company’s pivotal role in driving the AI revolution.

Future Prospects and Continued Growth

Looking ahead, NVIDIA’s prospects appear promising, fueled by the continued expansion of AI applications and the proliferation of cloud computing. With its strategic initiatives aimed at targeting custom AI chips for cloud computing companies, NVIDIA is poised to further strengthen its competitive advantage and capitalise on emerging opportunities in the AI ecosystem.

As the AI boom continues to gather momentum, NVIDIA remains at the forefront of innovation, poised for sustained growth and success in the years to come.

Conclusion

In conclusion, NVIDIA’s meteoric rise to become the world’s third-largest company is a testament to its exceptional performance, technological prowess, and strategic vision. With its unwavering focus on driving innovation and capitalising on the growing demand for AI infrastructure, NVIDIA is poised to maintain its trajectory of growth and dominance in the global market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.