On Tuesday, June 18, 2024, the semiconductor chip giant Nvidia emerged as the most valuable company in market capitalization by overtaking tech giants like Microsoft and Google’s parent company Alphabet.

Nvidia started as a small company which manufactures gaming PC cards that dethrone every company in the gaming segment and became the leader in gaming GPUs. Nvidia manufactures more powerful GPUs than the market had expected from them. They continually upgrade and give the best out of themselves, always from the strong management who pushes the company forward from continuous inventions and innovations by changing business dynamics.

Nvidia provides powerful AI chips to gaming, AI chat boats, autonomous cars, data centres, health care and life sciences, and robotics. It is also building new AI interfaces for almost every industrial need and finding solutions to their problems.

Now the world will be a digital economy and every industry expects powerful AI chips to cater to their needs and reduce costs and human errors by solving unsolved puggles in their industry. Previously everyone has talked about AI for more than a decade, and we have almost forgotten about AI, but ChatGPT makes it a reality by using the world’s most powerful AI chip H100 by Nvidia. Nivida announced the Blackwell architecture chips B200 on March 18 2024. Named for the honour of statistician and mathematician David Blackwell.

Now we have no doubt this decade belongs to AI, and Nvidia integrates its powerful chips and AI tools that meet every industry’s needs to make the best products and services. Previously Nvidia gave the best gaming chips that the market expected from them. Now the world industry is expecting more powerful AI chips and tools from Nvidia so that the top management will meet the world’s expectations. NVidia invested 8.675 billion US$ in this year 2024 with an increase of 18.2% increase from 2023 in R&D alone to make their dream come true in future. In the future, every consumer and industrial powerful electronic component will use Nvidia’s chips.

Revenue segments of Nvidia

Over the years Nivida’s revenue segment has been increasing rapidly and its main revenue segment is coming from the sale of powerful chips to data centres. The other next main revenue generator is the gaming segment and that is the place the company initially started to produce graphic processors. The other segments like professional visualization, automotive and OEM also add more and more revenue segments to the growth.

source: Statista

Financials

The company revenue jumped from 10.90 US billion dollars in the year 2020 to 60,92 US billion dollars in the year 2024 with a rapid growth rate of 458.89 %. The net income in the year 2020 was 2.80 US billion dollars and it was zoomed to 29.76 billion us dollars in the year 2024 with a growth rate of 962. 85 %.

Many people are saying every time that NVidia is overvalued and even the father of valuations Aswath Damodaran talked about it many times and corrected himself after watching every quarter’s results. NVidia is overvalued but after declaring bumper results by beating the street estimates the share price is rising every quarter on quarter by keeping fundamental valuations strong. So, its valuations are good to hold that market cap price.

List of the world’s top 10 Market capitalisation companies

1.) Nvidia

Nivida is the USA-based first semiconductor chip to enter the 1 trillion US dollar. It takes 9 more months from there to reach 2 trillion US dollars. To emerge as the world a largest market capitalisation of 3.322 trillion dollars from a 2 trillion market cap it just takes 3 months’ time frame.

2.) Microsoft

Microsoft has the US-based world’s second-largest market capitalisation of 3.317 trillion dollars and it is the second company after Apple to touch the 3 trillion market capitalisation mark. It is the software giant with a commanding market share and rules the cloud computing business. By coming back strongly with the integration of AI in the Windows operating system by the launch of copilot by integrating with open AI’s chat GPT.

3.) Apple

Apple is the 3^rd largest market capitulation company and it is the first company in the world to enter 1 trillion capitalisation mark in the world. The present market capitalisation of Apple is 3.285 us trillion dollars. It produces both hardware and software and sells premium smartphones, tabs, laptops, desktops, smartwatches and earbuds. It is the most famous and lovable brand in worldwide.

4.) Google

Alphabet is the parent company of Google and it is a USA-based company with a market capitalization of 2.171 USA Trillion dollars. It’s a major Internet company in the world and the majority of revenue comes from selling through ads. We can imagine the world without Google.

5.) Amazon

Amazon is a USA-based company with a market capitalisation of 1.902 trillion USA dollars it is the world’s largest e-commerce company and sells goods online and the majority of its revenue from prime subscriptions and cloud services.

6.) Saudi Armco

Saudi Armco is a Saudi Arabia-based crude oil conglomerate company and it is the world’s most profitable company. It has many subsidiary companies and it will explore crude and petroleum products and sells throughout the world. Its market capitalisation is 1.787 USA trillion dollars.

7.) Meta Platforms (Facebook)

Meta Platforms is a USA-based social networking company its products are Facebook, Instagram, WhatsApp, oculus and Rift. It was heavily invested in the metaverse platforms. It is market capitalisation is 1,266 USA billion dollars.

8.) TSMC

TSMC is a semiconductor manufacturing company based in Taiwan and its market capitalisation is 931.97 USA Billion dollars.

9.) Berkshire Hathway

Berkshire Hathaway is an investment company based in the USA and it was controlled by Warren Buffet the world’s most renowned successful stock market investor. its market capitalisation is 880.93 US Billion dollars.

10.) Eli Lilly

Elli Lilly is the USA pharmaceutical global giant. the Elli Lilly weight loss drug Zepbond is predicted to be the selling drug in the history of the world. its market capitalisation is 847.24 USA Billion dollars.

Being a semiconductor company and becoming a market to leader in capitalization is unbelievable. If we make the best products everyone will buy there will be no choice to choose. Many people same Nivida products are more costly than their competitors but still, their sales picking up more and more speed generating heavy revenue. Out of the top 10 only two are from different countries and the remaining all are from the USA. The top global companies are still the market leader and have a commanding grip on the world economy.