Nvidia has reached a market valuation of over $3 trillion, solidifying itself as one of the most valuable companies in the world. This milestone comes after the GPU design company reached $2 trillion in February 2024 and $1 trillion in May 2023.
This impressive valuation places Nvidia slightly above Apple (at the time of publication, although this figure may fluctuate) and makes it the second most valuable public company in the world, only surpassed by Microsoft, which has a market capitalization of $3.15 trillion. These three companies are the only ones in history to reach such a valuation.
Exponential Growth and Stock Split
Nvidia’s shares have increased by over 3,224 percent in the last five years. The company has announced a 10-for-1 stock split that will take place at the end of this month, a move that could make its shares more accessible to retail investors.
Impressive Financial Results
In May, Nvidia reported revenues of $26 billion, representing a 262 percent increase compared to the same period last year. Data center revenues reached $22.6 billion, a 427 percent increase from last year and a 23 percent increase from the previous quarter.
The Accelerated Computing Revolution
Nvidia founder and CEO, Jensen Huang, stated at that time, “The next industrial revolution has begun: companies and countries are partnering with Nvidia to transform traditional trillion-dollar data centers into accelerated computing and build a new type of data center: AI factories, to produce a new commodity: artificial intelligence.”
Huang highlighted that the growth of data centers was driven by strong and accelerated demand for generative AI training and inference on the Hopper platform. Beyond cloud service providers, generative AI has expanded to consumer internet companies, enterprises, sovereign AI, automotive and health clients, creating multiple multi-billion-dollar vertical markets.
Optimistic Forecasts
Nvidia also forecasted total revenues of $28 billion, plus or minus two percent, for the current quarter, exceeding analysts’ expectations.
The boom of AI-driven data centers has led Nvidia to unprecedented heights, solidifying its position as a leader in technology and accelerated computing. The company is not only transforming global data infrastructure but is also positioning itself as a key player in the next era of artificial intelligence. With a market capitalization of $3 trillion and continuous growth, Nvidia is on track to continue revolutionizing the tech industry.