Thanks to the success of the burgeoning market for AI accelerators, NVIDIA has been on a tear this year. And the only place that’s even more apparent than the company’s rapidly growing revenues is in the company’s stock price and market capitalization. After breaking into the top 5 most valuable companies only earlier this year, NVIDIA has reached the apex of Wall Street, closing out today as the world’s most valuable company.

With a closing price of $135.58 on a day that saw NVIDIA’s stock pop up another 3.5%, NVIDIA has topped both Microsoft and Apple in valuation, reaching a market capitalization of $3.335 trillion. This follows a rapid rise in the company’s stock price, which has increased by 47% in the last month alone – particularly on the back of NVIDIA’s most recent estimates-beating earnings report – as well as a recent 10-for-1 stock split. And looking at the company’s performance over a longer time period, NVIDIA’s stock jumped a staggering 218% over the last year, or a mere 3,474% over the last 5 years.

NVIDIA’s ascension continues a trend over the last several years of tech companies all holding the top spots in the market capitalization rankings. Though this is the first time in quite a while that the traditional tech leaders of Apple and Microsoft have been pushed aside.

Market Capitalization Rankings
  Market Cap Stock Price
NVIDIA $3.335T $135.58
Microsoft $3.317T $446.34
Apple $3.285T $214.29
Alphabet $2.170T $176.45
Amazon $1.902T $182.81

Driving the rapid growth of NVIDIA and its market capitalization has been demand for AI accelerators from NVIDIA, particularly the company’s server-grade H100, H200, and GH200 accelerators for AI training. As the demand for these products has spiked, NVIDIA has been scaling up accordingly, repeatedly beating market expectations for how many of the accelerators they can ship – and what price they can charge. And despite all that growth, orders for NVIDIA’s high-end accelerators are still backlogged, underscoring how NVIDIA still isn’t meeting the full demands of hyperscalers and other enterprises.

Consequently, NVIDIA’s stock price and market capitalization have been on a tear on the basis of these future expectations. With a price-to-earnings (P/E) ratio of 76.7 – more than twice that of Microsoft or Apple – NVIDIA is priced more like a start-up than a 30-year-old tech company. But then it goes without saying that most 30-year-old tech companies aren’t tripling their revenue in a single year, placing NVIDIA in a rather unique situation at this time.

Like the stock market itself, market capitalizations are highly volatile. And historically speaking, it’s far from guaranteed that NVIDIA will be able to hold the top spot for long, never mind day-to-day fluctuations. NVIDIA, Apple, and Microsoft’s valuations are all within $50 billion (1.%) of each other, so for the moment at least, it’s still a tight race between all three companies. But no matter what happens from here, NVIDIA gets the exceptionally rare claim of having been the most valuable company in the world at some point.

(Carousel image courtesy MSN Money)



View All Comments

  • Terry_Craig - Tuesday, June 18, 2024 - link

    Human stupidity has no limits. Reply
  • ballsystemlord - Tuesday, June 18, 2024 - link

    Now if only we could convince humans to use their brains.
    (Instead of, for example, relying on an AI.)
  • Railander - Wednesday, June 26, 2024 - link

    why don't you start with your own? Reply
  • PeachNCream - Wednesday, June 19, 2024 - link

    Investors get frantic about chasing investment profits and this sort of disconnection between share price and core company value happens as a result. But yes, agreed, humans as a collective are idiots and as individuals are even worse. Reply
  • GeoffreyA - Wednesday, June 19, 2024 - link

    We need Service Pack 1 to be rolled out to the species. Reply
  • boozed - Wednesday, June 19, 2024 - link

    Definitely not a bubble. No sir. Reply
  • ZoZo - Tuesday, June 18, 2024 - link

    Apple and Microsoft are switched in the table. Microsoft is second at $3.317T. Reply
  • Ryan Smith - Tuesday, June 18, 2024 - link

    Thanks! Reply
  • hallstein - Tuesday, June 18, 2024 - link

    Absolute insanity. Reply
  • Blastdoor - Wednesday, June 19, 2024 - link

    Agreed. But it's an opportunity for Nvidia, if their management is willing to take it. They should either buy Intel or, if regulators won't allow it, get as close to buying them as they can get away with. It is *much* harder to fab chips using cutting edge processes than it is to design chips and there's going to be a shortage of foundry capacity for a long time. Intel is vastly undervalued right now (although I get why investors are cautious), and an all stock deal from Nvidia to either buy Intel outright or to acquire some major 'first in line' status for foundry capacity for a long time could make a lot of sense. Nvidia could give Intel $100 billion worth of Nvidia stock, it would be a boon for Intel, and no skin off Nvidia's nose. Reply

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