The world of technology has once again created a great history. Artificial Intelligence (AI) discs manufacturing from the US company Nvidia Corp. surpassed the world’s most valuable company and overtook legendary businesses such as Microsoft and Apple. The company’s market cap (market cap) increased to $ 3.45 billion on Tuesday, exceeding Microsoft’s 3.44 trillion market value. The tremendous stock boom has had an increase of up to 24% in Nvidia shares over the past one month. The particular thing is that this increase is not just the move of the stock market, but that the company’s good strategy, tremendous demand and great earnings are hidden. This is not the first time NVIDIA has planted the number 1 – in January 2024 the company was at the top for some time, but now it has achieved this post again. The demand for AI chips is the biggest reason for this unprecedented success of Nvidia, its AI chips’ global demand. GPU (Graphic Processing Unit) of Nvidia is used extensively by companies such as Openai, Google, Meta and Amazon for artificial intelligence and machine learning. These chips are essential for data processing, which makes the AI model sharp and efficient. The quarterly results recorded the confidence in the results recently announced, Nvidia a total of $ 44.06 billion, which is 69% higher than the previous year. In addition, revenue (EPS) per share was also $ 0.96, which was better than Wall Street estimate. This further strengthened investors on the business. The market cap has increased by $ 1 billion dollars over the past two months due to the big increase in Nvidia shares, the company’s market value has risen by about 1 trillion dollars. This growth was mainly possible due to increasing estimates of AI spending and successful supply capacity of the new Blackwell chips of the business. This report also removed the concerns of investors who are on export sanctions imposed by the US on China. The opinion of experts: The right time for investment, according to Thomas Martin, senior portfolio manager of Gleval Investments, “the questions about Nvidia have now been positively resolved. Now this business has become an attractive option for investors again.” Currently, Nvidia shares are trading at 29 times the estimated profits of the next 12 months, lower than the average of its previous decade (34 times). The execution of Nvidia also expects Nasdaq to perform Nvidiaf which looks much better than the Nasdaq 100 index. The approximate PE ratio of Nasdaq is 26 times, but compared to Nvidia, the revenue growth will be much higher in the coming years. This is why big investors start giving Nvidia priority in their portfolio. The possibility of risk has remained, but there are some risks to Nvidia. 13% of the total revenue of the business comes from China and as tariff discussions between the US China and the technical export policy become stiffer, it can affect the growth of the company. Nevertheless, the recent Middle East strategies and business events of the US have slightly reduced these dangers. The new era of investment in AI – Microsoft, Meta, Alphabet and Amazon – which is herself big clients of Nvidia – invests a lot in infrastructure. According to Bloomberg, the joint capital expenditure of these businesses may be $ 330 billion by 2026, which will be 6% higher than in 2025. The direct benefit will be available for AI -chip companies such as NVIDIA. Conclusion Nvidia proves the world’s most valuable company that the future direction is AI, and Nvidia stands in the middle of this revolution. Nvidia has now become a main basis of the digital era, not just a manufacturer of chip, thanks to technological innovation, strategic supply and global demand.
Nvidia has become the world’s valuable company, AI chips have changed the game
