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Nvidia’s role in the AI wave has made it a $2 trillion company

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Nvidia has reached a market capitalization of $2 trillion, following Apple and Microsoft, on the strength of its dominance in chips for generative AI like the H100 and H200.

Nvidia has officially hit a $2 trillion market capitalization, making it the first chipmaker to cross the threshold. It’s also the third US company to reach over a $2 trillion valuation, right behind Apple and Microsoft . The California-based company has seen rapid growth over the past year due to its leadership in the AI chip market. Nvidia’s market cap reached $1 trillion only less than one year ago, and it left both Amazon and Alphabet in the rearview mirror as it became a $1.

9 billion in revenue in 2023, marking a 126 percent increase from 2022. Other companies, like OpenAI, Microsoft, and Intel, are working to decrease reliance on Nvidia with AI chips of their own, but matching its performance and production capabilities is a goal that’s still hard to reach. Last year, Nvidia announced the H200, the successor to its flagship H100 GPU for AI models, which promises higher memory capacity and bandwidth.

 

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