NVIDIA Surpasses Microsoft: The New Market Leader

In June 2024, NVIDIA overtook Microsoft to become the most valuable company globally, marking a significant shift in the tech industry landscape. This milestone is a result of the explosive growth in demand for generative AI technologies, which has reshaped company valuations since the previous year.

The Rise of Generative AI

Generative AI technology has revolutionized various sectors, leading to significant changes in stock market standings. NVIDIA’s market value soared to approximately $3.334 trillion, surpassing both Apple and Microsoft. The company’s valuation increased by 3.1 times in just one year, making it the third company in history to achieve a market value of $3 trillion by June 2024.

GPU Demand and Technological Advancements

NVIDIA’s CEO, Jensen Huang, highlighted the upcoming Blackwell generation GPUs, expected to be integrated into customer data centers by Q4 2024, with shipments beginning in Q2. The new B200 GPU series is anticipated to meet the high demand for next-generation computing power, a demand already exceeding supply as noted by CFO Colette Kress.

Dominance in AI Semiconductors

NVIDIA’s success is largely driven by the need for computing resources in generative AI, with their GPUs being the most sought-after in the AI semiconductor market. The training of large-scale language models (LLMs) and other AI technologies have spurred a surge in GPU demand, positioning NVIDIA as a market leader with an 80% market share in AI data center semiconductors as of 2023.

Historical Innovations and Future Prospects

The introduction of CUDA technology in 2006 allowed GPUs to be used for a variety of computational tasks beyond image processing, significantly expanding their applications in AI. NVIDIA’s revenue for Q1 2024 reflected a 3.6-fold increase, reaching $26.044 billion. The launch of the Blackwell architecture and B200 GPUs in March 2024 is set to further enhance performance, maintaining NVIDIA’s competitive edge.