On Tuesday, Nvidia became the world’s most valuable public company, surpassing Microsoft with a market cap of $3.34 trillion. Microsoft moved into second place ahead of Apple, which holds a market cap of $3.28 trillion.
Nvidia’s shares surged due to high demand for its processors driving AI applications. On Tuesday, the stock hit a record high of nearly $136, marking a year-to-date increase of 180%. In contrast, Microsoft, which invested early in AI through OpenAI, saw a 20% gain this year.
Nvidia and HPE Partnership Accelerates Generative AI Adoption
Nvidia’s stock surge follows an announcement of its collaboration with Hewlett Packard Enterprise (HPE) to develop products aimed at accelerating the adoption of generative AI. This initiative, branded as Nvidia AI Computing by HPE, integrates Nvidia’s AI computing stack with HPE’s private cloud technology.
Nvidia CEO Jensen Huang highlighted the significance of this partnership, stating, “Generative AI and accelerated computing are driving a profound transformation across industries as they embrace the digital revolution.” He emphasized that Nvidia and HPE have deeply integrated their technologies to provide enterprise clients and AI professionals with advanced computing infrastructure to push the boundaries of AI capabilities.
Nvidia specializes in producing hardware for video game consoles, graphics processing units (GPUs), and processors tailored for the AI sector. Its GPUs are also widely utilized for cryptocurrency mining, including Ethereum (ETH), Monero (XMR), and Zcash (ZEC).
In recent years, Nvidia’s processors have played a critical role in the AI industry, powering large language models (LLMs) and other AI applications. Microsoft, for instance, has utilized Nvidia’s powerful A100 GPUs, which were priced at approximately $15,000 each in 2023, to enhance advanced LLM capabilities for its cloud services.
Nvidia’s Growth Driven by AI Demand and Financial Performance
A report by TrendForce in March last year revealed that OpenAI’s GPT model required approximately 20,000 of Nvidia’s graphics processing units (GPUs) for processing training data in 2020. As AI models like ChatGPT continue to advance, this demand is expected to increase further.
Analysts foresee this growing demand contributing significantly to Nvidia’s earnings in the future. In February, Nvidia achieved a milestone by becoming the first chipmaker to reach a $2 trillion market capitalization following record fourth-quarter results.
In May, Nvidia reported impressive first-quarter revenue of $26 billion for fiscal year 2025, marking a remarkable 260% increase compared to the previous year. These financial results exceeded expectations set by Wall Street analysts.
“Demand shows no signs of slowing down,” remarked Ben Barringer, a technology analyst at Quilter Cheviot, following Nvidia’s strong financial performance, as reported by the BBC.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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