Chip giant Nvidia has reached a historic milestone, becoming the first company in its industry to achieve a market capitalisation of $3 trillion (about R57 trillion).
The uptake is fuelled by the booming demand for their artificial intelligence (AI) powered chips.
Fuelled by AI
Nvidia’s stock price rocketed 147% this year, adding a staggering $1.8 trillion to their market value. This incredible growth is directly linked to the increasing need for powerful AI chips used in various applications.
Surpassing the Tech Titans
On Wednesday, Nvidia’s stock price reached a record high, pushing their market cap above $3 trillion. This achievement dethroned Apple, the previous leader, marking a significant shift in the tech landscape. Notably, this isn’t Nvidia’s first time surpassing Apple. In 2002, both companies were valued under $10 billion each, but with the rise of AI, Nvidia has taken a dominant position.
The future of AI
Nvidia shows no signs of slowing down. CEO Jensen Huang is committed to annual upgrades for their AI accelerators, solidifying their position in the AI revolution. This commitment, combined with the recent stock surge, has significantly boosted Huang’s wealth to over $107bn.
Huang believes the rise of generative AI signifies a new industrial revolution, and Nvidia is positioned to play a central role. He emphasises the company’s crucial role in integrating this technology into personal computers.
A changing landscape
Nvidia’s success highlights the booming AI market and its impact on the tech industry. While they still trail Microsoft in overall market value, analysts predict Nvidia will soon claim the top spot. Conversely, Apple faces headwinds due to declining iPhone sales in China and EU fines. However, Apple’s stock shows signs of recovery, indicating a potentially tighter race for tech dominance.