NVIDIA has reached a market capitalization of $3.011 trillion, surpassing Apple to become the world’s second most valuable company behind Microsoft which is also close at $3.15 trillion. This rapid ascent is notable compared to other heavyweights in the tech industry. In just five months, NVIDIA's market cap has increased from $1.21 trillion on January 6, 2024, to its current valuation—an increase of $1.801 trillion.
To put this into perspective, Amazon's entire market cap is $1.886 trillion. Essentially, NVIDIA has added nearly the full market cap of Amazon in less than half a year.
Note: Data from Companies Market Cap
What is driving NVIDIA's growth?
The company's rapid growth is driven by its AI chips, known for their speed, are crucial for AI tasks such as training and inferencing, and have significantly boosted NVIDIA's revenue. In addition to its hardware, NVIDIA offers a wide range of products and services to advance AI projects. This makes it a leader in the AI ecosystem.
NVIDIA has two new platforms which could disrupt the computing world. The Blackwell platform, introduced on March 18, 2024, promises to enable real-time generative AI on trillion-parameter large language models with up to 25 times less cost and energy consumption compared to its predecessor.
And recently, NVIDIA CEO Jensen Huang unveiled the Rubin platform at Computex 2024 in Taiwan. Rubin, which includes new GPUs and a central processor named 'Vera'. It is expected to ship to customers later in 2024.
Another of NVIDIA's key contributors is its data centre revenue, which includes revenue from AI-related products and services. Interestingly, NVIDIA's data centre revenue has surpassed its video game revenue.
NVIDIA is also expanding into new areas such as deep learning and autonomous vehicles which is expected to help it grow into a much bigger business.