Nvidia’s market value skyrockets to $3 trillion thanks to AI revolution

Nvidia, the leading company in generative artificial intelligence, reached a significant milestone as its market cap surpassed $3 trillion for the first time. The stock surged 5% to $1,224.40, closing at an all-time high. This achievement also propelled Nvidia to become the second-largest public company, trailing only behind Microsoft.

This remarkable performance is a culmination of Nvidia’s exceptional growth over the past five years, with the stock surging by more than 3,224%. The company’s trajectory has been nothing short of astounding, leading to its decision to split its stock 10-for-1 later this month.

In comparison, Apple was the first U.S. company to hit a $3 trillion market cap back in January 2022, followed by Microsoft in January 2024. However, Nvidia’s rapid ascent from a $2 trillion valuation in February to $3 trillion in just three months is unprecedented.

The key driver behind Nvidia’s success lies in the relentless demand for its high-performance graphics processing units (GPUs) in developing and deploying advanced AI models. Tech giants like Google, Microsoft, Meta, Amazon, and OpenAI are among the top customers investing billions of dollars in Nvidia’s GPUs.

Nvidia’s latest first-quarter earnings report further underscored the company’s robust growth, with sales exceeding $26 billion, tripling from the previous year. The company also outperformed Wall Street expectations, projecting revenue of around $28 billion for the current quarter.

In conclusion, Nvidia’s meteoric rise to a $3 trillion market cap solidifies its position as a powerhouse in the AI industry. With its innovative technologies driving significant advancements, Nvidia continues to attract investors seeking a piece of its remarkable success story.

Back To Top