The net worth of Nvidia might stun you for a moment, but what do you expect from a multinational company. Investors usually use this value to judge the market standings of the company. For Nvidia, the value is quite impressive. Here’s what you should know.
As of March 2022, Nvidia’s net worth is $690 billion, making it the eighth-most valuable company worldwide. After subtracting its liabilities, the net worth measures how much the company really owns. Most times, experts calculate this by multiplying the price for each share by the number of the total shares. Whichever way, a positive value signifies that it’s doing well.
What Is Nvidia?
Nvidia came on board on April 5, 1993. It was established by Jensen Huang, Chris Malachowsky, and Curtis Priem with only $40,000. These three believed that graphics-based computing could solve more problems than general-purpose computing.
Besides their belief in computing, they also shared the same thought that video games would have a high sales value with time. As a result, they channeled their energy into producing video games and funding projects to solve computing problems.
It gained a reputation for releasing RIVA TNT in 1988. The following year, the company released GeForce 256, which introduced on-board transformation and lighting. Sequoia Capital and other ventures noticed the company’s potential and funded it with $20 million after it went public in 1999.
Nvidia secured the contract to develop the graphics hardware for Microsoft’s Xbox game system due to the success of its products. As a result, the company got $200 million in advance.
The company then bought Exluna for an unknown price in July 2002. Exluna created software rendering tools, and the company’s employees were absorbed into the company’s project. Nvidia also purchased MediaQ for around US$70 million in August 2003; then, it acquired Hybrid graphics in 2006.
Since then, there have it has acquired other companies. It has also been recognized for its releases in the technological world.
Nvidia’s Net Worth
The net worth of Nvidia is capped at $690 billion as of March 2022. Many experts determine a company’s worth by its market capitalization. Either that or they multiply the number of shares by the current stock price.
Net worth is an indication of how well a company is doing financially. If the value is positive, the company is faring well in the business world. On the other hand, a negative number proves a few financial instabilities within the company.
Since the market fluctuates, a company’s net worth also changes with time. As a result, you might have different net worth values at different times of the year.