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Amid an AI boom, the US chipmaker has added more than $500 billion in value since the start of 2023. See how it compares to other tech giants.
Nvidia joins Apple, Microsoft, Alphabet and Amazon, with the company briefly reaching a $1 trillion market cap on Tuesday, making it one of the few companies to do so.
Shares of the California-based chipmaker have risen significantly since early 2023, nearly tripling, driven in part by a wave of artificial intelligence (AI) innovations over the past year.
The animation below highlights Nvidia’s market cap over the last 10 years.
How Nvidia Became a $1 Trillion Company
Nvidia was incorporated on April 5, 1993, and went public in 1999, with shares trading at $0.82.
In 2016, Nvidia’s market cap started its upward trajectory with the surge in sales of high-end graphics cards driven by gaming, AI, virtual reality, and automotive.
During the coronavirus pandemic, the company expanded as gaming increased along with the adoption of cloud computing and the rise in Bitcoin mining.
By the end of 2022, Nvidia’s stock plummeted nearly 50 percent from its yearly high due to a slowdown in growth and a broader market sell-off.
How does Nvidia power AI?
Nvidia specializes in designing and manufacturing hardware, including graphics processing units (GPUs), responsible for tasks such as displaying high-quality graphics for computing and gaming.
About 80 percent of GPUs are produced by Nvidia. The high-performance chips are incredibly powerful, making them optimal for industries such as healthcare, gaming, and machine learning.
However, the rise of the AI era has thrust Nvidia into the spotlight. It recently announced the development of its AI supercomputer, which will run generative AI language applications, data analysis and recommendation systems.
Even with its high valuation and large market share, analysts believe Nvidia’s AI chip segment has even more growth potential as generative AI leads the tech sector.
Who is Jensen Huang, the CEO of Nvidia?
CEO Jensen Huang, 60, has been leading the company since co-founding it 30 years ago.
Huang was born in Taiwan and then moved to the US, where he studied electrical engineering at Oregon State University before pursuing a master’s degree in the same subject at Stanford University.
Huang is recognized for bringing innovation to Nvidia and shaping the company’s direction, putting it at the forefront of the chip industry.
Four tech companies in the trillion dollar club
The table below lists the largest technology companies as of June 1, 2023. Apple is the world’s most valuable company with a market capitalization of $2.78 trillion, followed by Microsoft ($2.44 trillion), Alphabet ($1.56 trillion), Amazon ($1.23 trillion), and then Nvidia ($0.93 trillion).
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