DailyPost 2826
WORLD’S MOST VALUABLE COMPANY
When businesses touch financial landmarks, the history of the world changes. This has been the course of human history since the time capitalism gained roots and business enterprises became the fulcrum of growth of any country. The number of highly valued companies in a sector also gives a very clear indication as to where the world is moving. Without getting into too much of history Apple reached the $1 trillion mark in mid-2018 and it achieved a $2 trillion valuation by August 2020, Saudi Aramco was the first to cross that dizzying valuation mark.Covid and ensuring online movement has certainly played its role too.
Post Covid, the tectonic change happened with the ChatGPT, literally taking the world by storm and the naysayers of Artificial Intelligence were silenced for good. The phenomenal growth of the IT behemoths in the last few years has been mind boggling. Today there are 7 companies which are more than $1trillion, 2 between $1.5 to $2 trillion, 1 more than $2 trillion and 3 have crossed the magical figure of $3 trillion. But for one, all belong to the IT arena. The most valued company today is pegged at $3.34 trillion.
The company heralds the AI revolution, it is its poster boy. It is the processor of the AI revolution, the chip on which we enjoy the fruits of the AI world. The company is Nivida, and is valued at $3.34 trillion, number one by market capitalization. Today it is the fastest growing company in the world. The chips behind ChatGPT come from them. The headlines blare, “AI frenzy makes Nvidia the world’s most valuable company,” says it all. The price of its shares doubled since the start of the year. On Tuesday, the stock ended at $136, up 3.5%, making it more valuable than fellow tech giant Microsoft. It overtook Apple also very recently earlier this month.
Data was touted as the new oil, but the Californian company’s meteoric rise says it all. It is the dominance of what analysts call the “new gold or oil of the tech sector,” the chips needed for artificial intelligence (AI). Eight years ago, the stock was less than 1% of its current price. Before the boom in demand for chips to run generative models, Nvidia has benefitted considerably from a rush to mine Bitcoin in 2020, which saw a sharp upswing in the sales of graphic cards. The fierce AI competition between heavyweights; Microsoft, Google, Meta and Apple helps Nvidia, which as well as developing AI tech of its own,
dominates the vast majority of the AI chip market.
WITH NVIDIA, MICROSOFT AND APPLE’s MARKET CAPITALISATION AT NEARLY A TIE, THE WORLD’s WATCHES WITH BATED BREATH FOR THE FIRST FOUR TRILLION DOLLAR COMPANY.
Sanjay Sahay
Have a nice evening.