Nvidia became the first chipmaker in history to breach the $1 trillion market value barrier, reaching $1.01 trillion as its shares rose in response to the growing adoption of generative AI. At the time of writing, Nvidia shares were trading at $412.71, a 6% increase over the previous day and a stunning 188% increase for the year.
As a result, Nvidia joins Apple, Microsoft, Saudi Arabia, Google, and Amazon as one of just six corporations with a market valuation of more than $1 trillion. Nvidia is also only the eighth firm in history to reach $1 trillion in revenue.
Nvidia’s tremendous ascent over the course of the year coincided with the mainstreaming of generative AI and huge language models like ChatGPT, with blue-chip tech giants like Google, Meta, and Microsoft spending massively in AI infrastructure to beef up their AI capabilities.
Nvidia has been instrumental in the development of the AI ecosystem of hardware and, perhaps more crucially, software that is powering the AI revolution.
The cheap maker appears to have no clear rival for its top position in AI hardware processing horsepower and the effectiveness of its CUDA software programming architecture.
The company’s strengthened its position at Computex 2023 this week, unveiling a broad portfolio of new solutions to address a wide range of segments, ranging from massive supercomputers like its DGX GH200 to a new line of reference MGX system designs that will bring AI to mainstream data centres and enterprises.
Nvidia is also utilising the rewards of its strategic acquisition of Mellanox to construct its own AI-centric networking infrastructure that connects its solutions, giving it yet another competitive advantage: the capacity to design tightly connected systems at data centre scale.