Nvidia’s shares rose by 3.5 per cent to $135.58 on Tuesday as the demand for chips for artificial intelligence (AI) software continues to increase.
The share price now values the company at $3.34 trillion against Microsoft’s 3.32 trillion, with the price having nearly doubled since the start of 2024. Eight years ago, the stock was worth less than 1 percent of its current value.
Nvidia’s new gains come just days after the company overtook Apple to become the world’s second most valuable company, while Apple and Microsoft’s shares dropped by 1.1 percent and 0.45 percent respectively.
Nvidia, whose graphics processing units (GPUs) are integral to the development of AI, supplies tech giants such as Microsoft, Meta and Google.
The company was founded on April 5, 1993, by Jensen Huang, Chris Malachowsky, and Curtis Priem, with a vision to bring 3D graphics to the gaming and multimedia markets.
In the 2000s, Huang, the company’s CEO, led the company in the development of GPUs for use in applications besides gaming, positioning it to benefit from the emergence of AI.
With the stunning rise of the company’s market value, Huang has become the 11th richest person in the world. The CEO’s net worth has increased by more than $4 billion to $119 billion.
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