The graphics processor giant, Nvidia, has achieved a historic feat by briefly becoming the most valuable company in the world, surpassing Apple in market capitalization. Last Friday, Nvidia’s valuation reached 3.53 trillion dollars, exceeding Apple’s 3.52 trillion. However, by the end of the day, its value had slightly dropped to 3.47 trillion dollars.
This is not Nvidia’s first ascent to the top. In June of this year, the company temporarily took the spot of most valuable company, only to be surpassed by Microsoft and Apple. On that occasion, Nvidia also crossed the 3 trillion dollars mark in market capitalization, just months after a 10-for-1 stock split.
Nvidia’s rapid growth in the market has been driven primarily by the demand for its GPUs for data centers, fueled by the rise of generative artificial intelligence. In August, the company reported record revenues of 30 billion dollars, with 26.3 billion coming from its data center division, representing a 154% increase compared to the same period last year.
Nvidia is expected to release its next earnings report on November 20th. Expectations are high, especially considering that its latest generation of GPUs for servers, Blackwell, is already fully sold out for the next 12 months, a clear sign of the growing demand in the AI sector.
From its first milestone of 1 trillion dollars in May 2023 to 2 trillion in February 2024, Nvidia has shown a growth trend that continues to surprise the industry, solidifying its position not only as a leader in graphics processing technology, but also as a key player in the global AI and data center ecosystem.