AI frenzy makes Nvidia the world's most valuable company

Nvidia, a chip-maker, has become the world's most valuable company with a worth of $3. 34 trillion, surpassing tech giants like Microsoft and Apple. The company's meteoric rise is attributed to its dominance in the AI chip market, which is considered the 'new gold or oil in the tech sector'. The global head of business development for telco at Nvidia, Chris Penrose, expressed optimism about the future growth of the sector, particularly in generative AI. Analysts at Wedbush Securities also believe that Nvidia will be in a race to reach a $4 trillion market cap in tech, competing with Apple and Microsoft. However, some commentators have raised concerns about the increasing competition that Nvidia faces. Despite this, Nvidia's growth has been remarkable, with its stock price nearly doubling since the beginning of the year. The company has benefited from the high demand for AI chips and experienced a surge in sales of its graphics cards due to the rush to mine Bitcoin in 2020. Jensen Huang, the CEO of Nvidia, has gained significant popularity and is often referred to as the 'Taylor Swift of tech' by Meta boss Mark Zuckerberg. The competition among AI developers, including tech heavyweights like Microsoft, Google, Meta, and Apple, has been beneficial for Nvidia, which dominates the AI chip market. The company's sales and profit figures have exceeded analyst expectations, indicating sustained demand. However, there are concerns about Nvidia's ability to maintain its large market share amidst growing competition and questions about the monetization of its AI software by customers.