Nvidia briefly became the first ever $4 trillion company

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It's yet another huge landmark for Nvidia

NVIDIA COMPUTEX KEYNOTE
(Image credit: Future)
  • Nvidia briefly became the first company ever to reach a $4 trillion valuation
  • Data centre revenue and AI form huge part of Nvidia's success
  • Despite brief dip, it remains the world's most valuable company

After months battling it out to become the world's most valuable company, and briefly holding that title on several occasions, Nvidia has become the first company ever to hit a staggering $4 trillion market cap.

Although the company's value has since dipped slightly, to just $3.972 trillion at the time of writing, it remains the world's most valuable company ahead of Microsoft and Apple – the only two other companies to have passed the coveted $3 trillion mark.

Although fluctuations continue to see the three companies change positions, Nvidia continues to see strong growth due to continued demand for AI chips.

Nvidia becomes the world's first $4 trillion company

Much of Nvidia's success can be attributed to the launch of ChatGPT in November 2022, as its stock has risen more than 15x in the past five years as a result of the demand for AI.

More recently, Nvidia shares are up 15% month-over-month and 22% year-to-date.

The news comes in the year after Nvidia hit $2 trillion (February 2024) and $3 trillion (June 2024) valuations.

Internally, Nvidia's earnings also continue to grow, with first-quarter revenue up 12% quarter-over-quarter and a health 69% year-over-year. The company also revealed that data centre revenue also up 73% compared with last year, accounting for over 88% of the company's total revenue.

"Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate," CEO Jensen Huang explained.

This marks a departure from Nvidia's past, when it was known for its gaming GPUs. With Nvidia stock worth just 1% of what it's worth today eight years ago, it's unclear how much more growth the company could be set to experience.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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