San Francisco. In terms of becoming the world's largest company, graphics chip maker Nvidia has left Apple behind on the basis of market value. In this era of AI (Artificial Intelligence), Nvidia's market value has reached $3.43 trillion, which is more than Apple's $3.38 trillion.
Under the leadership of Nvidia CEO Jensen Huang, the company overtook Apple for the first time in June, but then it was only for a day. The company's shares rose 2.9 percent on Tuesday, taking its market cap to $3.43 trillion. Nvidia now accounts for 7 percent of the S&P 500 index.
Microsoft's market cap currently stands at $3.06 trillion. Nvidia reported revenue of $30 billion in the second quarter ended July 28, up 15 percent from the previous quarter and 122 percent from last year.
Huang said demand for their “Hopper” chips remains strong and there is also a lot of excitement about the upcoming “Blackwell” chips. He said that largescale upgrades are taking place in the data centers for AI and faster computing technology, due to which the company's earnings have reached record levels.
During the first half of fiscal 2025, the chip maker returned $15.4 billion to shareholders in the form of share buybacks and cash dividends. As of the end of the second quarter, the company has $7.5 billion left for share repurchases.
Huang has asked SK Hynix to produce its nextgeneration highspeed memory chips six months ahead of schedule. This is because the demand for AI computing chips is increasing rapidly.
The demand for Nvidia's AI accelerators (which work on lots of data to advance AI technology) has increased significantly. These accelerators require highspeed memory chips to function properly.
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Image Credit: KhasKhabar.