jlk – Nvidia, a chip company based in the United States, has surpassed tech giants Google and Amazon in the list of the world’s most valuable companies. Currently, Nvidia holds the fourth position with a market capitalization value of around 1.794 trillion US dollars or approximately 28,000 trillion Indonesian rupiahs as of Friday (2/16/2024).
Nvidia’s market capitalization value has increased by 46.72 percent from the end of 2023, which stood at 1.223 trillion US dollars or about 19.139 trillion Indonesian rupiahs. At that time, Nvidia was still below Google and Amazon, which had market capitalization values of approximately 1.781 trillion US dollars and 1.763 trillion US dollars, respectively.
The surge in Nvidia’s market value is attributed to the booming artificial intelligence (AI) technology, which requires Nvidia’s graphics processing units (GPUs). Nvidia GPUs are widely used in data centers to process AI, by major cloud computing companies such as Amazon Web Services (AWS), Microsoft Azure, and others.
One of Nvidia’s flagship products, the AI H100 GPU, supports most of the large language model (LLM) models used today, such as OpenAI’s ChatGPT and many AI projects from Microsoft, Meta, and Amazon.
Additionally, Nvidia also supplies GPUs to Google, which reportedly requires more than 4 million Nvidia GPUs for AI development. This deal could be valued at 100 billion US dollars or around 1,500 trillion Indonesian rupiahs.
With around 80 percent market share in AI chips, Nvidia rightfully earns the title of the king of the AI chip market. This has had a positive impact on Nvidia’s stock performance, which has increased by 47 percent throughout the year, and more than tripled in 2023.
Although Nvidia now has a market value of 1.794 trillion US dollars, they still have to chase after three companies ahead of them, namely Microsoft (3.020 trillion US dollars), Apple (2.839 trillion US dollars), and Saudi Aramco (2.062 trillion US dollars).