Nvidia once again solidifies its position as the most valuable company on the stock market. As the first company ever, Nvidia reaches a valuation of 4 trillion dollars.
No company is as sought after today as Nvidia. Since the AI hype erupted at the end of 2022, Nvidia has been ubiquitous. This has translated into stock market success that seems to have no ceiling. On Wednesday evening, the company’s market capitalization soared to a new record: 4 trillion dollars. If Nvidia were a country, it would be the sixth richest in the world.
Nvidia is the first company to reach this milestone. Apple came close in December with 3.8 trillion, but Nvidia proves to be the undisputed king of the stock market. Since 2022, the company’s value has increased tenfold.
Rockstar in IT
Although Nvidia has only recently skyrocketed to unprecedented heights, the foundation for its current success was laid in 2012. Until then, Nvidia was only known among gamers. In 2012, an AI model was successfully developed on Nvidia chips for the first time. The company saw an opportunity and decided to fully invest in AI chips. Those who bought Nvidia shares at the time are sitting on a goldmine today.
All major IT companies want to connect with Nvidia in some way today. Jensen Huang tours the world and has gained the status of a rockstar. Companies like OpenAI, Microsoft, Amazon, Google, and Meta purchase billions of dollars worth of chips from Nvidia to train models. With the story of “AI factories”, Nvidia manages to captivate infrastructure players like Lenovo, HPE, and Dell once again.
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But even the most valuable company in the world must sometimes navigate turbulent waters. The launch of DeepSeek briefly made the world believe that Nvidia’s glory days were numbered. The trade war between the United States and China pushed Nvidia out of the Chinese market, the most important market for the company after its home country. These setbacks have not yet halted Nvidia’s rise.