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Key News Facts
Nvidia has reached a historic milestone, becoming the first company to achieve a market capitalization of $5 trillion, driven by its dominance in the AI sector with over 90% market share in GPUs. CEO Jensen Huang has projected that Nvidia will surpass $500 billion in annual revenue soon.
Microsoft’s early adoption of a comprehensive product ecosystem, akin to Nvidia’s strategy with CUDA, enabled it to maintain significant market control. This foundational strategy has proven vital for both companies, creating a “lock-in” effect that hinders customers from switching to competitors.
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