Nvidia’s market capitalisation briefly crossed $4.02 trillion, making it the most valuable publicly traded company in the world. Shares of the company touched an intraday high before settling lower, ending the day at a valuation just under $4 trillion. Microsoft and Apple, which had alternated as the world’s most valuable firms in recent years, were each valued at around $3.3 trillion at the time.
This surge has been fuelled by Nvidia’s dominant position in the artificial intelligence (AI) chip market. The company’s GPUs, especially the H100 and the newer Blackwell series, are considered foundational infrastructure for AI model training and deployment across the tech industry.
Nvidia’s stock up nearly 170% in 2024
The company’s share price has climbed nearly 170% since the beginning of 2024, following a 239% rise in 2023. Much of the momentum has come from increased enterprise spending on AI infrastructure, as well as strong quarterly results that consistently exceeded analyst expectations.
Nvidia is now responsible for a significant share of gains in the broader US stock market. As per Bloomberg, the company accounts for nearly one-third of the S&P 500’s gains in 2024.
The company’s net income has surged in parallel. In its most recent quarterly report, Nvidia posted revenue of $26 billion, up 262% year-on-year, with net income rising to $14.88 billion.
AI infrastructure demand boosts valuation
Nvidia’s valuation reflects its central role in powering generative AI systems used by companies like OpenAI, Google, Amazon, and Meta. The rapid adoption of large language models and AI-driven enterprise tools has created sustained demand for Nvidia’s chips and systems.
Its data centre business alone accounted for over 86% of total revenue in the last quarter, indicating a heavy reliance on AI-related spending. The company also recently announced plans to ramp up production of its next-gen Blackwell chips, expected to be available later this year.
Brief lead in market cap rankings
Although Nvidia briefly surpassed Microsoft and Apple in market cap, the lead was short-lived. By market close, Nvidia’s valuation had dipped slightly below Microsoft’s, which remains ahead by a narrow margin. Analysts note that fluctuations in top rankings are likely to continue as tech stocks remain volatile amid ongoing AI investments.
