Nvidia, the graphics chip giant, has surpassed Microsoft to become the world's most valuable public company with a market cap exceeding $3.3 trillion. This significant shift in the tech industry is driven by the increasing demand for AI computing. Nvidia's stock has surged dramatically this year, with shares rising more than 170% in 2024 alone, primarily due to its dominance in the AI chip market. The company holds about 80% of the market share for AI chips used in data centers, leading to a 427% increase in Nvidia’s data center revenue.
Despite Microsoft's strong performance and significant investments in AI, it has been outpaced by Nvidia. However, Microsoft remains a powerful player in the market, with substantial resources and strategic investments. Nvidia's rise reflects the transformative impact of AI on the tech industry, demonstrating its crucial role in the future of computing. The competition between Nvidia and Microsoft is set to shape the tech landscape in the coming years.