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Nvidia hits $2 trillion market cap: 5 key insights into the AI chip giant superpower

Nvidia's CEO Jensen Huang
Picture Credits: Nvidia

In the complex world of technology, Nvidia has made a name for itself by going beyond the usual chipmaking. Known for creating chips that made gaming more realistic, Nvidia has now become the fourth biggest company in the world with the surge of AI, trailing only behind Saudi Aramco, Microsoft, and Apple. In fact, Nvidia entered an exclusive league last Friday as its market capitalisation surpassed $2 trillion, shortly after the chip manufacturer announced exceptional earnings that reignited Wall Street’s enthusiasm for artificial intelligence.

But as the market closed, the chipmaker’s stock value had fallen below the $2 trillion threshold, reversing some of its gains earlier in the day. Now the chip giant is the fourth most valuable company in the world after rallying nearly 60% since the beginning of the year, only behind Microsoft in terms of market capitalisation. This puts Nvidia in the company of Apple, Microsoft, Amazon, Alphabet, Meta, Alibaba, Baidu, and Huawei. 

Let’s uncover five key aspects of Nvidia’s transformation, that’s shaping today’s tech world and driving us towards a future filled with AI.

3rd American company to achieve a $2 trillion valuation

Nvidia recently became the third American company to achieve a $2 trillion valuation, propelled by its impressive post-earnings performance. With its market capitalisation soaring by about $50 billion to reach $2.01 trillion on Friday, Nvidia now stands alongside tech giants Apple and Microsoft in the exclusive $2 trillion club. Surpassing its counterparts in value, Nvidia’s market cap now exceeds that of Amazon by $190 billion and Google parent Alphabet by $212 billion. The company’s unprecedented market cap gain of over $275 billion in a single day contributed to its shares hitting an all-time high of $808 on Friday.

In 2023, the company’s valuation surpassed the one trillion-dollar mark, reflecting the profound impact of its AI-focused ventures and market leadership.


Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia is a technology company headquartered in Santa Clara, California. 

Nvidia, originally known for producing computer chips geared towards graphics and gaming, has undergone a significant shift in focus. Today, the company dominates the market for chips used in AI systems, marking a transformative evolution from its gaming-centric origins. Specialising in graphics processing units (GPUs), Nvidia has expanded globally, with a focus on AI technology, developing GPUs tailored for deep learning and AI applications, driving advancements in AI research.

Market leadership

With about 95% of the GPU market for machine learning, Nvidia stands as a dominant force in the AI hardware landscape. The company’s AI chips, also integrated into data centre systems, command a price of approximately $10,000 each, further solidifying its market dominance and revenue stream.

Accelerating mathematical operations

Nvidia’s ascent as an AI superpower can be attributed to a bold technological gamble made in 2006. Researchers at Stanford University discovered that GPUs could accelerate mathematical operations, a capability absent in regular processing chips. Good timing, technological foresight and innovation set Nvidia on a trajectory towards becoming a key player in the AI ecosystem.

Jensen Huang: From restaurant shifts to $2 trillion tech titan

Jensen Huang, the visionary co-founder and CEO of Nvidia, embodies the epitome of Silicon Valley success. Rising from humble beginnings, he transitioned from graveyard shifts at a restaurant to pioneering the world of technology. Known for his iconic black leather biker jacket, a signature style at Nvidia’s keynotes, Huang co-founded the company on his 30th birthday alongside Curtis Priem and Chris Malachowsky. With backing from Silicon Valley’s elite, including Sequoia Capital, Nvidia revolutionised gaming with specialised chips that power motion graphics, now ubiquitous as GPUs (Graphics Processing Units).

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