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Nvidia’s stock price is still rising thanks to AI chips, now on top with a new record market cap

Nvidia on top of the world
Last Updated on June 19, 2024
Nvidia's stock price skyrockets thanks to AI chips, leaving AMD in the dust
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Nvidia has become the world’s most valuable company due to its dominance in the market for AI chips. The company’s stock price has skyrocketed over the past year, driven by the surge in demand for its GPUs used in building AI systems. Nvidia’s rise has been incredibly fast.

Just two years ago, the company was valued at a little over $400 billion. Now, it’s worth more than $3 trillion. This rapid growth is largely due to Nvidia’s CEO, Jensen Huang, who saw the potential of AI early on and built his company around this technology.

Dominance of AI chips

Nvidia currently controls over 80% of the market for AI chips, hitting $3.336 trillion market value on June 18 for the first time. The company’s chips are in high demand by big tech companies like Microsoft, Apple, and Google, all of which are building their own AI systems. However, these companies are also developing their own AI chips to reduce their dependence on Nvidia.

Despite the competition, Nvidia’s future looks bright. The company has a significant head start in the AI chip market and a large community of AI programmers who prefer its technology. Nvidia is also investing in new areas like supercomputers, which are powerful machines used for scientific research and other demanding tasks.

Nvidia becomes the most valuable company in the world – Image Source: Company Market Cap


While tech giants like Microsoft, Google, Amazon, and Meta along with chipmakers AMD and Intel are all pushing their own AI chip designs, Nvidia’s CEO remains confident. He sees their head start of a decade and a strong base of AI programmers comfortable with their technology as a significant advantage that won’t be easily overcome. While some analysts are concerned about the sustainability of Nvidia’s growth, the company is confident that it can maintain its lead in the AI chip market. Nvidia’s rise to the top is a sign of how much artificial intelligence is transforming the tech industry.

Nvidia is not finished for this year yet, with its ‘Blackwell’ GPU architecture and a gaming-focus RTX 50 series expected between now and the end of the year.

Tom is a tech writer with a detailed view on ensuring the best buying advice, most useful information, and latest news makes its way into PC Guide's articles.