New Delhi: Chipmaker Nvidia Corporation has dethroned Microsoft as the world's most valuable company following a rally in its shares driven by the growing AI wave.
Shares of Nvidia Corp, which makes GPUs and drives advances in AI, robotics, autonomous vehicles and emerging technology, spurted by over 3% on Tuesday to $135.58, taking its market valuation by $110 billion to USD 3.335 trillion to become the most valuable company.
Nvidia recently surpassed iPhone maker Apple to become the second most valuable company. Microsoft is valued at around USD 3.317 trillion as its shares slipped nearly half a per cent. Apple was valued at $3.286 trillion as its share fell 1% on Tuesday.
Nvidia shares have risen nearly three-fold this year so far against a 19% rise in Microsoft shares.
Nvidia Corp went public in 1999 at a price of $12 per share. Nvidia shares have skyrocketed multiple times since its listing driven by the development of gaming and new-age technology chips.
An investment of Rs 10,000 in Nvidia IPO in 1999 would have given astronomical returns, making you a millionaire. How? Let's show you.
Based on the rupee-dollar exchange rate of around 43 in 1999, an investment of Rs 10,000 would have earned around 19 shares.
Over the years, Nvidia Corp has announced stock splits to reward its investors and make it easier for investors to own its shares.
Cumulatively, one share of Nvidia bought prior to stock splits in 2000 has turned into 480 Nvidia shares as of today. It means 19 shares bought in the IPO would have turned into 9,120 shares of the company.
At the current trading price of $135 per share, these shares are valued at $1.231 million (around Rs 10.3 crore at the current exchange rate of 83.40).
Thus an investment of Rs 10,000 would have made an investor a crorepati in around 25 years.