NVIDIA Beats Microsoft to Become World's Most Valuable Company, at $3.34 Trillion

[btarunr]

With a market capitalization of USD $3.34 trillion, NVIDIA has beaten Microsoft to become the world's most valuable company. The company's valuation doubled year-over-year, thanks to its meteoric rise as the preeminent manufacturer of AI accelerator chips that's in a dominant position to support the productization and mainstreaming of generative AI, and the company only expects further growth of the AI acceleration industry. Chris Penrose, global head of business development for telecom at NVIDIA, speaking at an event in Copenhagen, said "The generative AI journey is really transforming businesses and telcos around the world," he said. "We're just at the beginning." BBC notes that eight years ago, NVIDIA was worth less than 1% of its current valuation.

In the most recent quarterly result, Q1 fiscal 2025, NVIDIA posted a revenue of $26 billion, with the Data Center business handling the company's AI GPUs making up the lion's share of it, at $22.6 billion. The Gaming and AI PC segment, which handles the GeForce GPU product line that used to be NVIDIA's main breadwinner until a few years ago, made just $2.6 billion, in stark contrast. This highlights that NVIDIA is now mainly a data center acceleration hardware company that happens to sell visual compute products on the side, along with a constellation of smaller product lines such as robotics and automobile self-driving hardware. With NVIDIA at the number-1 spot, the top-5 most valuable companies in the world are all American tech giants—NVIDIA, Microsoft, Apple, Alphabet (Google), and Amazon. The other companies in the top-10 list include Meta and Broadcom.



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[Daven]

Apparently, it's all luck according to Patty Cakes.

Intel CEO says Nvidia’s AI dominance is pure luck — Nvidia VP fires back, says Intel lacked vision and execution | Tom's Hardware (tomshardware.com)

I guess Jensen put all his SPECIAL perk points into Luck.

 

[AnarchoPrimitiv]

Apparently, it's all luck according to Patty Cakes.

Intel CEO says Nvidia’s AI dominance is pure luck — Nvidia VP fires back, says Intel lacked vision and execution | Tom's Hardware (tomshardware.com)

I guess Jensen put all his SPECIAL perk points into Luck.

Luck and being at the right place at the right time ALWAYS plays a part in any success

 

[Hxx]

My only regret is I should have put more money into their stock a year or so ago.

 

[GhostRyder]

That is how the game goes, they were into the AI sphere early and its gone bonkers. I am shocked its ahead of Microsoft.

 

[R0H1T]

Why so shocked? The stock markets are an even bigger money pit than crypto markets, the ones really holding the bag at the end of this "bull run" will probably see stars in the day especially when they can't monetize "AI" as they needed to

Oh & the investment banker always takes his cut so there's that!

 

[bonehead123]

Well maybe now, Jacket Man will splurge on some NEW jackets, different style, color, cut etc...instead of more of the same ole same same ones that he already has like 10K of, heeheehee

As long as my dividend checks keep coming, in ever-increasing amounts, I'd be ok with this......

But seriously, this is typical for tech companies, catch the wave early, ride it hard, and enjoy the spoils.... but I hate to think what will happen when the machine take over everything & eliminates Jacket Man & 99.99% of their staff... bubble buster anyone ?

 

[wolf]

My only regret is I should have put more money into their stock a year or so ago.

Same, feels too close now to the bubble bursting, but I should have bough shares in Nv and AMD years ago. 20/20 hindsight naturally.

 

[bonehead123]

Same, feels too close now to the bubble bursting, but I should have bough shares in Nv and AMD years ago. 20/20 hindsight naturally.

As in "you snooze, you lose"

Soooo glad I bought my shares back in the day for way, way less than they are currently going for...

 

[Prima.Vera]

How the hell do you teach your kids that he should not be greedy, that greed is bad, while the greediest company in the world, just become richer than half of countries on the Planet. Almost 4 Trillion USD. The GDP of USA is only x10 times larger, just to make an ideea what mamooth of a company nGreedia is...

 

[ARF]

only x10 times larger

Wrong. More like only x5 times larger, and this is disputable, because the real sector is much smaller.

 

[R0H1T]

Wrong. More like only x5 times larger, and this is disputable, because the real sector is much smaller.

Meh, take this to the grave ~

Power resides where men believe it resides.

 

[dirtyferret]

3.3 trillion buys a lot of leather jackets

 

[redeye]

Same, feels too close now to the bubble bursting, but I should have bough shares in Nv and AMD years ago. 20/20 hindsight naturally.

i think the term is “ Coulda shoulda woulda”
but, apple holds its value (blue chip stock) … Nvidia is a TiN stock, lol, (titanium nitride, or gold looking… you know TiN drill bits) or fools gold. will Nvidia stock hold its value?

will not last long, how many people are shorting Nvidia stock?

 

[Chrispy_]

AI feels like a big-tech circle jerk at the moment.

It hasn't really achieved anything industry-changing yet and at the end of the day, it needs to be profitable which means customers must be willing to pay for it - which eventually means end-users like us.

AI isn't useless and definitely has a future, but right now this looks like one crazy bubble that's going to leave a lot of people standing around and wondering where their money vanished to when the dust has settled.

 

[Neo_Morpheus]

With the recent split, it started at 120 and in a week went to 135.

i am concerned that its a bubble at this point. Not sure if its safe to buy more.

 

[dragontamer5788]

NVidia is a good company, but largest company is a mistaken market.

NVidia's profits is just $14B last quarter. Microsoft's was like $21B. Apple is $23B.

I don't expect a "collapse" or anything, but there will be a correction.

AI feels like a big-tech circle jerk at the moment.

It hasn't really achieved anything industry-changing yet and at the end of the day, it needs to be profitable which means customers must be willing to pay for it - which eventually means end-users like us.

AI isn't useless and definitely has a future, but right now this looks like one crazy bubble that's going to leave a lot of people standing around and wondering where their money vanished to when the dust has settled.

NVidia is best posed to benefit from this bubble though. Tons of people are buying NVidia equipment, and when the dust settles NVidia may lose some numbers in a quarter or two, but NVidia's cash pile will be large and invested into something better. GPUs are here to stay as a dominant form of compute, even if AI itself is a bubble.

But there's no way NVidia's elevated profits will stay this high (and even with these elevated profits, NVidia has far less profits than Microsoft or Apple).

 

[FoulOnWhite]

AMD is on its back with its legs in the air like a tortoise.

 

[Vayra86]

AMD is on its back with its legs in the air like a tortoise.

Not really, there's even some pie for AMD. For now, at least.

 

[Easo]

Considering it rose almost twice in size since January this screams bubble. It's not like they would die if (when) it burst, of course, but still this is beyond insane. Well, at least it looks good on GDP ratings... xD

 

[SOAREVERSOR]

Why so shocked? The stock markets are an even bigger money pit than crypto markets, the ones really holding the bag at the end of this "bull run" will probably see stars in the day especially when they can't monetize "AI" as they needed to

Oh & the investment banker always takes his cut so there's that!

It's not bullshit like crypto though. It's also a vastly better use of GPUs than crypto, even more so than PC gaming. There's plenty of use for it. All that use is in getting rid of human jobs to create more money for those at the top. Which is... capitalism.

Remember the .com bubble? Except it wasn't the bubble people thought it was. Buying goods online really was the future. But the issue with the future is always it slaughters all the small players and gives birth to a few monopolies. Now everyone is on Amazon and brick and mortar stores are going away. At one point personal computers were a bubble. They didn't really do anything useful for most people. They were multi thousand dollar devices that people stored recipes on. Still more useful than PC gaming, but hardly a justification for one. Now every home has one and all work is done on them and they are in everything. Of coures this also required the mass slaughter of a lot of computer and component makers and consolidation.

The iPhone and iPad were widely mocked when they were released and they didn't work well. Now most people do most computing tasks on them. The cloud got mocked the same but now everything is there.

AI is here to stay. Like everything else it's going to take time to get there and all but the top players are going to be crushed and ruined and jobs are going to be lost left and right. That's just the way these things go. But it will get there. Amazon, Microsoft, Google, IBM, and Apple are going to be fine. Everyone that can't throw billions at it is going to be screwed. Even some who can, Elon, are already fucking up bad enough they are going to get screwed.

 

[Soul_]

Considering majority of this valuation is coming from AI growth. So, supplier of raw material is valued higher than combined value of AI market at this point. Go figure!!

 

[R0H1T]

It's not bullshit like crypto though.

For me the stock markets are total BS, so no just so far as we're talking about the "valuations" I see no difference.

The cloud got mocked the same but now everything is there.

A lot of people, especially ones on tech forums like TPU, mock them for BS market8ing & rightly so. This in & of itself doesn't make or break anything in the real world ~ luck & yes timing makes a lot of difference. LG/Nokia did something similar a few years earlier than Jobs & really didn't go anywhere because they probably weren't ambitious enough & yes ~ marketing. The Symbian OS was great for its time, Nokia just didn't go full touchscreen when they needed to same goes for Blackberry!

 

[dragontamer5788]

For me the stock markets are total BS, so no just so far as we're talking about the "valuations" I see no difference.

Stock markets can become untethered to reality temporarily.

But at the end of the day: dividends and profits tie everything back down to reality. Eventually, companies run out of things to do with money and instead return the profits to their shareholders. Apple and Microsoft have reached this point (barely, they have small dividends... but dividends nonetheless).

But NVidia's 0.030% dividend is miniscule, and NVidia simply does not make enough profits to raise its Dividend (not at this valuation). In contrast, Pfizer is offering a 6.13% dividend. Does NVidia really think it can grown from here on out faster than Pfizer's 6.13% dividend? Or Ford (5%+ dividend).

Profits is the name of the game. If all the stock-growth is already priced in, then the Dividend-stocks take over as reliable "money making" strategy, as the growth eventually caps out as the hype-cycle ends. Its fun to ride the hype cycle up, but its difficult to choose when to get out of it (see ARK.k investing if you don't believe me).

 

[evernessince]

NVidia is best posed to benefit from this bubble though. Tons of people are buying NVidia equipment, and when the dust settles NVidia may lose some numbers in a quarter or two, but NVidia's cash pile will be large and invested into something better. GPUs are here to stay as a dominant form of compute, even if AI itself is a bubble.

But there's no way NVidia's elevated profits will stay this high (and even with these elevated profits, NVidia has far less profits than Microsoft or Apple).

I'd say Nvidia has capitalized on the bubble but I wouldn't say they are poised for the future of AI. The future of AI, like bitcoin, likely resides is specialized ASICs and not GPUs. ASICs will massively reduce power consumption and cost. Bigger companies like Meta and Google can afford to create their own hardware specifically optimized for their own AI models and smaller vendors don't want skyhigh datacenter / cloud costs. In order for AI to become widespread the transition away from pricey Nvidia GPUs is a requirement.