Nvidia's stock market has almost reached $2.8 trillion, very close to Microsoft and Apple

In a world where the news and our lives are filled with brand names such as Apple or Microsoft, it is interesting to imagine that Nvidia – not really a company we all know so well – might soon outshine these tech giants.

The story of Nvidia’s path from being unknown to potentially becoming the world’s most valuable company seems like something out of a Silicon Valley fairy tale.

Although this firm may not be what comes first in people’s minds when they think about buying things for their homes or personal use, its stock has gone up significantly in value. Nvidia’s stock market is worth nearly $2.8 trillion, surpassing bigwigs like Amazon and Alphabet while also nearing Apple and Microsoft. And what is pushing this sudden growth?

It’s mainly about the chips, especially those that give energy to AI.

Nvidia’s graphics chips, once reserved only for gamers and computer lovers, have a fresh and profitable role. They are central to the AI revolution, powering everything from data centers to clever devices like smart speakers or game controllers.

This market niche may not be as widely desired as an iPhone or Windows PC, but it brings high profits. In the previous year, Nvidia’s revenue more than doubled to reach $61 billion, and net income grew almost seven times over, so Nvidia’s stock market will surely grow even more. When we compare this with Apple’s slower growth, it becomes evident why investors are putting their money on Nvidia.

But now, something more fascinating is happening. Microsoft, Meta, and Intel are joining forces to compete against Nvidia’s control of the AI chip industry. The three companies have declared their creation of Ultra Accelerator Link, which aspires to be a fresh standard for aiding communication among AI data systems.

This action is like a swoop into Nvidia’s territory, as they have around 80% control over the AI chip market. The teamwork between these big tech companies shows how important AI chips are in the technology world, and they won’t let Nvidia enjoy it all alone.

So, why does all this matter to you and me? This is a reminder that there are hidden powers behind our digital world. Even though we might use products from Apple or Microsoft (with Copilot+ PC being the latest trend) every day, companies such as Nvidia silently influence the future of technology.

Nvidia becoming a common name in households could be a future development. If it keeps working quietly or takes center stage, we can say for certain that Nvidia is a tech giant to watch.