- Nvidia was short the first company ever to reach a $ 4 trillion valuation
- Data center revenue and AI make up a huge part of Nvidia’s success
- Despite short dip, it remains the world’s most valuable company
After months that fought for it to become the world’s most valuable company, and briefly holding this title on several occasions, Nvidia has become the first company ever to ever hit a staggering $ 4 trillion market capital.
Although the value of the company has since dipped a little, for only $ 3,972 trillion at the time of writing, it is still the world’s most valuable company ahead of Microsoft and Apple – the only other two companies that have passed the coveted $ 3 billion brand.
Although fluctuations continue to see the three companies change positions, Nvidia continues to see strong growth due to the continued demand for AI chips.
Nvidia becomes the world’s first $ 4 trillion company
Much of Nvidia’s success can be attributed to the launch of chatgpt in November 2022, as its stock has risen more than 15x in the last five years as a result of the demand for AI.
Recently, NVIDIA shares have increased by 15% month-over-month and 22% years to date.
The news comes the year after Nvidia hit $ 2 trillion (February 2024) and $ 3 trillion (June 2024) valuations.
Internally, Nvidia’s earnings also continue to grow with the first quarter of up 12% quarter over the quarter and a health 69% year-over year. The company also revealed that data center income also increased 73% compared to last year, which accounts for over 88% of the company’s total income.
“The global demand for Nvidia’s AI infrastructure is incredibly strong. AI -inferens token -generation has risen ten times in just one year and when AI agents become mainstream, the demand for AI -computing is explained,” explained CEO Jensen Huang.
This marks a departure from Nvidia’s past as it was known for its game GPUs. With the NVIDIA share worth only 1% of what it is worth today eight years ago, it is unclear how much more growth the company could be set to experience.
