In June 2024, Nvidia briefly became the world's most valuable company, and although it was later overtaken by Microsoft, the market capitalization of these tech giants has been comparable for the past few months. According to the latest gains, Nvidia's market capitalization has risen to $3.39 trillion, which may replace Apple and return to the throne of the world's most valuable company. In one of his videos, a tech blogger on YouTube explains why Nvidia has surpassed Amazon, Google, Microsoft and others to become the world's most valuable company this year. The blogger, Mrwhosetheboss, is a tech enthusiast with more than 10 million subscribers on YouTube, and he is dedicated to producing interesting and useful tech videos. This article will take readers and friends to understand how NVIDIA can become the most valuable company in the world.
The mobile phone computer used in daily life may be NVIDIA's graphics card. And in June this year, Nvidia successfully overtook Apple, the company that sells high-end smartphones to a third of the world's population, and Nvidia beat Apple only by high-end PC graphics cards. What's even more surprising is that Nvidia was only founded in 1993. Nvidia founder Jensen Huang, who worked as a waiter at a restaurant, had a love of computer science in his youth and worked his way up to make it to AMD. Huang realized that the key factor holding PCS back to growth was the performance that didn't match it, so he left the company he worked for and founded Nvidia with a friend.
Figure: How Nvidia can become the world's most valuable company
In 1999, NVIDIA released the world's first product defined as a GPU, GeForce 256, which was not only a revolutionary graphics card, but also the beginning of an era. This product effectively reduces the burden on the CPU through hardware coordinate conversion and light source processing, laying the foundation for advancements in gaming and computing. Nvidia has also become an industry leader because of the launch of GeForce. Although every few years Nvidia launches GPUs that have made great progress, GPUs alone are not enough to make Nvidia the most valuable company, and what really makes Nvidia's market value rocket growth is AI. In 2006, NVIDIA developed CUDA, a parallel computing platform and programming model. CUDA allows developers to take advantage of the power of GPUs and accelerometer computing applications, and it is not only a hardware technology, but also includes a complete software ecosystem, providing developers with a range of tools from low-level programming interfaces to high-level application frameworks, enabling non-graphics applications to be accelerated with GPUs. With the introduction of CUDA, NVIDIA's GPUs are not just graphics card tools for gaming, anything that wants to be done from a computer, or even building and training powerful AI models, can be done with NVIDIA's GPUs.
Over the past two decades, Nvidia's research on AI has been very in-depth, whether it is the research of scientific researchers or the algorithm that car manufacturers want to train for autonomous driving, NVIDIA has become their right-hand man. In recent years, artificial intelligence has shown an explosion of ways that everyone can use Chatgpt and other large model tools. When we make a request to an AI model, it's actually NVIDIA that handles the AI request. In addition, Nvidia has a 13-year partnership with Amazon, which together launched the world's first GPU cloud instance. Today, AWS offers the broadest range of NVIDIA GPU solutions for graphics, gaming, high-performance computing, machine learning, and generative AI. So when we visit a website, it's very likely that NVIDIA is processing the request. Although there are still many questions about AI, such as whether AI is overrated, etc. But recent studies have shown that at the current rate of AI consumption, the daily demand for AI alone could consume the energy consumption of the entire country in Netherlands. Although artificial intelligence is also exposing problems, the direction of the digital world will not change. Nowadays, GPUs are required for the production of science fiction movies, digital twins before surgery, etc., all of which require NVIDIA GPUs. That's why NVIDIA is the most valuable company in the world.
NVIDIA has managed to become one of the most valuable companies on a global scale through its early presence in the GPU technology, AI chip market, establishment of the CUDA ecosystem, market share gain, growth in the data center business, strategic acquisitions and partnerships, and strong financial performance. At the same time, NVIDIA is constantly responding to competition and challenges to maintain its market leadership.
