Nvidia, the renowned graphics processing and artificial intelligence (AI) giant, has ascended to the pinnacle of global market value, surpassing tech titans Microsoft and Apple. This achievement marks a significant milestone in the company’s evolution from its gaming-centric origins to a dominant force in the AI sector.

Nvidia's market capitalization has soared to an impressive $3.34 trillion, edging out Microsoft's $3.32 trillion and Apple's $3.29 trillion. The company's shares are currently trading at approximately $135, reflecting a recent 10-for-1 stock split that aimed to make the stock more accessible and align it with the Dow Jones Industrial Average's preferences. Prior to this split, Nvidia's shares were valued at around $1,200 each.

The decision to undertake the stock split was strategic, aiming to position Nvidia favorably for inclusion in the Dow Jones Industrial Average, a weighted index that tends to exclude companies with prohibitively high share prices to maintain balance and avoid skewing the index.

Founded in 1991 with a focus on developing graphics cards for high-performance video games, Nvidia has significantly broadened its scope. The company initially gained substantial traction during the GPU-mining boom for cryptocurrencies around 2010, before the shift to application-specific integrated circuits (ASIC) diminished the demand for GPUs in crypto mining.

Today, Nvidia is at the forefront of the AI revolution, providing approximately 80% of the AI chips used in high-end data centers. Its graphics processors are integral to the operations of industry leaders such as OpenAI, Google, Amazon, and Microsoft, all of whom rely on Nvidia's technology to power their advanced AI systems and infrastructures.

In the first quarter of the fiscal year, Nvidia reported robust financial results with revenues reaching $26 billion. Notably, $22.6 billion of this was generated from data center operations, underscoring the company's pivotal role in the AI sector.

In light of these achievements, Nvidia’s founder and CEO Jensen Huang announced the company’s commitment to releasing new AI chipsets annually. Huang described this initiative as part of a modern industrial revolution with the potential to transform every sector of the global economy. Previously, Nvidia adhered to a biennial release schedule for its high-end microprocessors, with notable launches including the Ampere architecture in 2020, Hopper in 2022, and Blackwell in 2024.

Nvidia’s rise to the top spot in market valuation reflects its strategic pivots and innovations, particularly in the AI domain. As the demand for advanced AI capabilities continues to surge, Nvidia's technological advancements and annual release schedule position it to maintain its leadership and drive further growth. The company's trajectory underscores a broader trend in the tech industry, where AI and data-centric operations are increasingly becoming the cornerstone of value and innovation.