A boom in the field of artificial intelligence has seen chip maker Nvidia take the top spot, beating companies like Microsoft, which have held the top spot on the US stock market for years. Shares of the chipmaker rose 3.2 percent last week to $135.21, taking the company's market capitalization to $3.326 trillion.
The market value of the companies registered in the stock market and accordingly the total market capitalization depends on the ups and downs in the shares of that company. If the flow of buyers increases and the share price increases, the market capitalization of the company increases. On the other hand, the company's shares start to sell off massively, causing the price to tumble, while the market capitalization declines. The Indian stock market, which had its biggest fall when the decision to lock down was announced after the onset of the Covid epidemic, has become millionaires today, astute investors who took the opportunity to buy. In just four years, the shares of many companies have increased from at least 50 percent to as much as 1000 percent.
Today, with the Indian stock market at its highest peak, the market cap or market capitalization of many companies is at record levels. This process takes place in the stock market all over the world; But the market cap of an American company has set a record. A boom in the field of artificial intelligence has seen chip maker Nvidia take the top spot, beating companies like Microsoft, which have held the top spot on the US stock market for years. Shares of the chipmaker rose 3.2 percent last week to $135.21, taking the company's market capitalization to $3.326 trillion.
A few days ago, Nvidia took the second place, surpassing iPhone maker Apple. The company's market value went from $1 trillion to $2 trillion in just nine months, and it took just three months to reach $3 trillion in June. The Nasdaq Composite Index is up more than 20 percent so far this year thanks to Nvidia's record-breaking rally. In comparison, the MSCI global index rose by around 10 percent, while the Nifty rose by 8 percent.
Shares of Nvidia are up nearly 180 percent so far this year, while Microsoft shares are up nearly 19 percent. How gigantic Nvidia's total market capitalization has become can be seen from the following points.
* More than the GDP of all but seven countries in the world
* More so than the entire crypto market
* Elon Musk's 'Tesla' is more than five times the market cap of the automobile company.
* More than six times the market cap of Walmart, the world's largest company by revenue
* More so than the French stock market
* The combined market cap of world-renowned billionaire Jeff Bezos' Amazon and Warren Buffett's Berkshire Hathaway
* Three times the GDP of Los Angeles
* As much as the combined net worth of the world's top 12 billionaires
* More so than the US oil and gas industry.
* The market capitalization of Nvidia, which earns so much, has increased by 2.3 trillion in just eight months from October 2023.
* Until four years ago, Nvidia was not even included in the top 50 companies in the world.
The company's shares have risen 591,078 percent since going public in 1999. This means, an investor would have invested 10,000 in shares of this company in 1999; So today its value would have been 59,107,800. If this investment was two lakh rupees, the said person would have become a billionaire after 25 years today.
The company Nvidia had set a new such record four months ago. In the month of February, the share of this company had increased by as much as 16 percent in one day. Due to this increase in the value of the shares, the market capitalization of Nvidia company increased by 277 billion dollars in one day.
The picture becomes clearer if we compare Nvidia with Indian market shares. India's Reliance Industries is the company with the highest weightage in the Nifty 50. It is ranked 46th in the world in terms of market capitalization. The market capitalization of this company is around 236.71 billion dollars i.e. 19.75 trillion rupees. That means Nvidia has a market capitalization of ten times that of Reliance. This gives an idea of ​​how rich this company has become.
Named as the world's most valuable semiconductor firm, the company has engineering development centers in four cities in India namely Hyderabad, Pune, Gurugram and Bengaluru. The company was established in 1993 to design and manufacture Graphics Processing Units (GPUs). The company was founded by Jensen Huang, Curtis Priem and Chris Malachowski. Among them, Jensen Huang is originally from Taiwan. He spent his childhood in Taiwan and Thailand. In 1973, his parents sent him to his relatives in America. In 1984, he joined Oregon University for education. He graduated in Electrical Engineering from here. After receiving a scholarship, he earned a master's degree from Stanford University in 1992. After studying there, he founded Nvidia in April 1993. Worked to manufacture video games, graphics chips. When the company's stock hit $100, Jensen had the company's logo tattooed on his wrist.
Actually, their journey here was a struggle. Before starting Nvidia, Jensen Huang had to work as a waiter in a restaurant for a few months to pay for his education. During this job, he sometimes had to clean toilets, and sometimes he also washed other people's clothes. Today he has joined the ranks of the world's billionaires. Currently, the main reason for the bullishness of the company's shares is that technology giants Microsoft and Google are buying huge quantities of chips from Nvidia. Chip purchases from Saudi Arabia and the United Arab Emirates have also increased significantly. Not only this, Chinese companies Tenset and Alibaba are also at Nvidia's door.
