Chipmaker Nvidia is the most valuable company on the stock exchange thanks to AI hype

This article was last updated on June 19, 2024

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Chipmaker Nvidia is the most valuable company on the stock exchange thanks to AI hype

Nvidia, an American chip manufacturer specializing in video cards, is the most valuable company in the world on the stock exchange for the first time. The company is now worth 3.1 trillion euros, leaving big names such as Apple and Microsoft behind. It is the next milestone in the company’s rapid growth.

The demand for Nvidia’s products has been extremely high for some time. This has everything to do with the major developments in the field of artificial intelligence (AI). Applications such as chatbot ChatGPT but also image generator Midjourney require a lot of computing power from computers.

Nvidia makes so-called GPUs, which stands for graphics processing unit. These are ideally suited for doing those heavy calculations.

27 billion euros in profit

That success is clearly reflected in the company’s financial results. In five years, turnover has increased six times: last year it amounted to 56 billion euros. The profit was 27 billion euros. Around this time last year, the stock market value exceeded 1 trillion euros for the first time. That was already a huge milestone.

Since then, things have gone very fast and a year later the value has exceeded 3,000 billion euros. There are only two other companies in the world that have reached that level: Apple and Microsoft. Two very well-known names, for decades. That does not apply to Nvidia.

The company was founded in 1993 in an American diner, Denny’s. Among the three founders was Jensen Huang, who is still at the helm of the company.