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The American chip manufacturer, Nvidia is not only the most valuable company in the world, but also became the first company in the world to reach the market capitalization of 40 billion US dollars.
Shares of Nvidia rose by 2 percent on Wednesday, and the market capitalization exceeded 4 trillion dollars. There has been curiosity about which company will touch the limit of four trillion first.
In the surge in generative artificial intelligence (Gen AI), investors are excited to buy the shares of Nvidia, which is manufacturing the necessary hardware (including GPUs, chips). Among the world's publicly traded companies, Nvidia's market capitalization has made such a record for the first time in history.
It has surpassed both Microsoft, Apple, Amazon, Alphabet (Google), Meta, Saudi Aramco. Nvidia, which became a 1 trillion dollar company for the first time in 2023, is continuously making profits with the increasing interest in developing AI-based technology. The chips manufactured by the company are considered to be as valuable as gold and fuel in today's hundreds.
in 1993 in California Founded by Nvidia, it crossed the $2 trillion mark in February 2024 and surpassed $3 trillion in June. Since the launch of ChatGPT in November 2022, the market for AI hardware and chips has grown exponentially. Nvidia is making huge profits from this . The company has been manufacturing the required graphics processing unit (GPU) of the Large Language Model (LLM).
In the last five years, the demand for AI chips and hardware has increased Nvidia's share price by more than 15 times, according to international media. Shares of Nvidia have increased by 15 percent in the last one month and have increased by 22 percent since the beginning of this year.
Nvidia's market continues to grow amid current geopolitical tensions and restrictions on chip exports to China. China's Dipsic AI model, released this year, was rumored to be manufactured at a very low price, and the chip manufacturers were worried about the market. But even from that, the company has risen again . According to CNN, after the export ban on the H20 chip made by the company for China, Nvidia said that it will lose 8 billion dollars in sales .
"The important Chinese market for the American industry has been closed," Nvidia's CEO Jensen Huang said at the time, "If we can't sell chips in the $50 billion Chinese market, we will have a huge loss." After US President Donald Trump increased tariffs, Nvidia's share price fell. According to the BBC, eight years ago the company's share price was less than 1 percent of its current value.
Along with the company's miraculous progress, the profile of Nvidia's chief Huang has also grown rapidly. Mark Zuckerberg, head of Meta, calls Huang the "Taylor Swift of technology". Huang is so popular, especially in Taiwan, that fans treat him like a rock star, writes Charlotte Edwards of the BBC .
