The tech market is currently witnessing an AI boom, which has various manifestations — from the emergence of new and better models to impact on people’s mental health. Another consequence of the surge in the popularity of artificial intelligence was significant financial fluctuations. And it was NVIDIA that deftly rode the crest of this wave. While other tech giants are only deploying «armies» of their AI products, Nvidia is selling them all weapons. It is not surprising that its capitalization is now reaching cosmic heights.
This week, NVIDIA’s market value reached $3.92 trillion, making it the most valuable public company in history. The previous record was held by Apple with $3.915 trillion as of December 6, 2024. Microsoft will also have to take a deep breath and move to the bench.
Why has NVIDIA’s capitalization soared? It’s simple: artificial intelligence is at its peak, and companies are rushing to acquire the most powerful AI models, data centers, and influence. NVIDIA doesn’t make chatbots like ChatGPT or voice assistants. It thinks deeper and more technically, for example, with the Nemotron-4 (340B) model, which generates synthetic data for training large language models (LLMs). But its main strength is in the supply of GPUs, which power most modern AI systems.
In fact, NVIDIA supplies chips to almost everyone trying to become the new «king of AI». Therefore, it has a contribution to its budget from every player in the AI market.
Interestingly, two weeks ago, Nvidia had just become the largest company with a market value of $3.34 trillion. And here it is — plus 17.4% to its capitalization in just 14 days.
An interesting fact: BlackRock, the world’s largest asset management company, manages more than $11.5 trillion (other people’s!) money, but its net worth is only $182.6 billion. It turns out that Nvidia is worth more than 21 times as much, even though it doesn’t manage other people’s money – it simply prints the future.
If the AI race doesn’t slow down — «green team» NVIDIA will continue to count green bills. And it seems that it is still far from the final.
Source: notebookcheck
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