A record-breaking feat has been achieved by Nvidia by reaching $4 trillion in market valuation, and it is all thanks to artificial intelligence.
Nvidia is now the first company to achieve this significant feat, with the company beating Apple yet again in the rankings, making history in the process.
Since late 2024, Nvidia started its climb to the top as it became a key player in the AI development race, and it has swapped places with Apple multiple times since then until it ultimately took the throne.
Nvidia Achieves $4 Trillion Valuation Thanks to AI
Less than two weeks after rising to the top of the world's market, Nvidia has yet again achieved another milestone as the company reached $4 trillion valuation, as reported by CNBC. This significant rise was prompted by a more than 2% rise in its shares, with it briefly rising to $164 per share earlier today before dropping back to $163 per share.
This new market capitalization achievement by the Santa Clara-based chipmaker still attributes its success to the massive demand for its AI hardware developments, providing GPUs and other processors to companies.
Nvidia has also developed the CUDA platform, which became a standard in developing AI models using their hardware and technology, making them a tentpole in the industry, according to ArsTechnica.
Nvidia Dethrones Apple, Makes History
Nvidia has yet again dethroned Apple as the most valuable company, with the chipmaker now the largest company in the world in terms of market capitalization and valuation.
However, alongside this, the company also made history as the first publicly traded enterprise to reach $4 trillion in valuation, a feat that no other corporations had achieved.
Nvidia only achieved the $2 trillion mark in February 2024, less than two years after ChatGPT launched in late 2022 and started the massive demand for AI. It was also last year when it reached $3 trillion in valuation in June and then rose to $3.8 trillion in December.
Nvidia's Rise to the Top
Nvidia's dedication to developing chips and GPUs for different kinds of needs, including being the renowned brand for AI, has led it to blow up to a $3 trillion valuation, which it achieved last year. Since then, Nvidia has grown more in the market, putting up stellar numbers and seeing immense growth because of its AI processors and GPUs, which it supplies to many companies.
In late 2024, Nvidia made noise again after surpassing Apple for the second time in the year, with the company raising its valuation by a couple hundred billions, recording $3.43 trillion by November. At this time, Nvidia became the most valuable company in the world, and it is still because of its CEO Jensen Huang and the entire team's newfound AI bet, which paid off significantly.
From being a chip maker for computers, supercomputers, and more, the company revealed that it is transforming its focus to now be an "AI Factory" that would focus on building infrastructure for the next-gen technology. Earlier this year, it reached the summit again and reached a $3.77 trillion valuation because of AI and robotics, surpassing the likes of Apple and Microsoft.
Originally published on Tech Times
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