Graphics processing and AI giant Nvidia provides roughly 80% of the artificial intelligence chips used in high-end data centers.

Nvidia Surpasses Microsoft and Apple to Become the World's Most Valuable Company

Key Highlights:
- Market Capitalization: Nvidia's market cap stands at $3.34 trillion, ahead of Microsoft's $3.32 trillion and Apple's $3.29 trillion.
- Stock Performance: Nvidia shares are trading at around $135 post a 10-for-1 stock split that took effect in early June. Pre-split, shares were approximately $1,200.

Strategic Stock Split
- Dow Jones Inclusion: The stock split aimed to make Nvidia eligible for the Dow Jones Industrial Average by reducing its share price, thus preventing it from skewing the index.

Nvidia’s Evolution
- Origins: Nvidia was founded in 1991 as a gaming company producing high-performance graphics cards.
- AI and GPU Mining: The company shifted focus to artificial intelligence (AI) and benefited from the GPU-mining boom for cryptocurrencies around 2010 until ASIC miners became prevalent.

Dominance in the AI Sector
- Industry Preference: Nvidia's GPUs are favored by leading tech companies like OpenAI, Google, Amazon, and Microsoft for AI development.
- Financial Performance: In Q1, Nvidia reported $26 billion in revenue, with $22.6 billion coming from its data center segment.

AI Chipset Development
- Annual Releases: CEO Jensen Huang announced the company will now release new AI chipsets annually, marking a shift from its previous biennial release schedule.
- Historical Releases:
- Ampere (2020)
- Hopper (2022)
- Blackwell (2024)

Impact and Future Outlook
Nvidia's strategic positioning and continuous innovation in AI and high-performance computing have cemented its status as the most valuable company globally. The annual release of AI chipsets is expected to further bolster its leadership in the AI arms race, influencing sectors across the global economy.