Nvidia hits $3.01 trillion market cap, surpasses Apple to become the second most valuable company in the world

Nvidia has become the world’s second most valuable company. The chipmaking giant’s market capitalization reached a staggering $3.01 trillion on Wednesday afternoon, surpassing Apple’s $3 trillion mark and making it the first chip firm to hit $3 trillion in market cap. The remarkable feat underscores the growing influence and demand for artificial intelligence.

This milestone comes just a year after Nvidia first joined the exclusive trillion-dollar club in May 2023, alongside tech titans like Alphabet, Amazon, Apple, and Microsoft. By February this year, Nvidia’s market cap had soared past $2 trillion, outpacing both Amazon and Alphabet.

“Shares of Nvidia (NVDA) climbed more 5% on Wednesday, reaching a record high of $1,224.40 and giving the company a market cap above $3 trillion for the first time ever. The stock’s advance pushed Nvidia past Apple, making it the second-most-valuable company in the US stock market, Yahoo Finance reported.

The company reported an impressive $14 billion in profit in May, driven by its dominant position in the AI chip market. Nvidia’s AI accelerators command between 70% and 95% of the market share, and the company plans to introduce a new AI chip annually. As Nvidia’s flagship H100 chip propels the company to new heights, its market cap continues to climb.

Currently, Nvidia trails only Microsoft, which boasts a market cap of $3.15 trillion. Nvidia’s stock is trading at over $1,220 per share, with a stock split scheduled for June 7th.

The Secret to Nvidia’s Success

What lies behind Nvidia’s extraordinary growth? The booming demand for generative AI tools, such as ChatGPT, has been a significant factor. Nvidia’s cutting-edge chip technology has positioned it as a leader in the AI race, a field with the potential to profoundly shape our future.

Nvidia’s graphics processing units (GPUs) are integral to the operation of generative AI platforms like OpenAI’s ChatGPT and Google’s Bard. Although Nvidia has long been a leader in the discrete GPU market, traditionally linked to high-performance gaming, its GPUs are now recognized for their vital role in artificial intelligence and machine learning.

The success of OpenAI’s ChatGPT has attracted the attention of major tech players like Alphabet and Microsoft, who are now harnessing the potential of generative AI. These advanced systems can engage in human-like conversations and produce diverse content, from jokes to poetry.

A Legacy of Innovation

Founded in 1993 by CEO Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia has built a legacy of innovation in GPU design and manufacturing. Originally focused on gaming, Nvidia has expanded its reach, making significant strides in artificial intelligence. The company’s advancements in AI and contributions to the gaming industry have solidified its position as a tech powerhouse.

As Nvidia continues to innovate and dominate the AI chip market, its trajectory suggests even greater achievements on the horizon. With a steadfast commitment to launching new AI chips annually, starting with the upcoming Blackwell B200 GPU, Nvidia is poised to shape the future of technology.