NVIDIA’s market capitalization officially exceeded US$2 trillion, becoming the first chip manufacturer to cross this threshold. It is also the third U.S. company to be valued at more than $2 trillion, after Apple ($2.83 trillion) and Microsoft ($3.06 trillion).
The California-based company has experienced rapid growth over the past year thanks to its leadership in the artificial intelligence chip market. Nvidia’s market cap hit $1 trillion less than a year ago, and earlier this month it became a $1.83 trillion company, putting both Amazon and Alphabet in the rearview mirror.
As part of last week’s earnings report, Nvidia reported record revenue of $60.9 billion in 2023, a 126% increase from 2022. Other companies such as OpenAI, Microsoft and Intel are working to reduce their reliance on Nvidia for AI chips including their own, but matching its performance and production capabilities remains a difficult goal.
Screenshot: Emma Rose/The Verge
Last year, Nvidia launched the H200, the successor to its flagship H100 GPU for AI models, which promised higher memory capacity and bandwidth. Nvidia plans to release high-end GPUs in the second quarter of 2024. The company is also working on a new $30 billion business making custom AI chips for other companies, according to a report from Nvidia. Reuters.