SUMMARY
- Nvidia recently had the biggest milestone of its lifetime.
- The GPU manufacturers took down Google and Meta in market caps.
Chipmaker, Nividia has been making waves after it introduced the much-hyped artificial intelligence (AI) revolution. Thanks to its new innovation, the Santa Clara, California-based company created history in the stock markets recently.
The shares of the company rose after an earnings report presented on Wednesday. The shares surpassed the estimates and set the expectations high for the rest of the year ahead. The company’s market capitalization briefly crossed $2 trillion for the first time ever, setting a record-breaking week for Wall Street.
Nvidia touches $2 trillion market cap
Nvidia, or NVDA, shares rose by over 4% at opening on Friday. This led to its market capitalization rising above $2 trillion amidst the blowout earnings reported on Wednesday. Notably, the California-based company’s journey towards the recorded $2 trillion has taken 25 years in the making.
However, the first trillion reportedly took longer than the second. After the company went public in 1999, it touched the $1 trillion mark after 24 years last year in May. Subsequently, the rise from $1 trillion to $2 trillion took just about nine months or 270 days.
It took Nvidia 24 years as a public company to reach a $1 trillion valuation (but just 8 months to reach $2 trillion).
Play the long game.
— Darren Marble (@darrenmarble) February 24, 2024
Stacy Rasgon an analyst at Sanford C. Bernstein said, “The company is printing money at this point. And the prospect for continued growth from here still seems solid.”
The milestone achieved by Nvidia further helps strengthen Wall Street’s claims and belief in the potential for artificial intelligence technologies. Morgan Stanley analyst Joseph Moore says, “We had never seen $2 billion+ of upside to quarterly revenue guidance until Nvidia did it a few quarters ago, but it has become routine during the AI surge. Strength of AI demand continues to be remarkable.”
Last year, the company’s stock price witnessed an increase of more than triple its value. This is especially credited to the increasing demand for artificial intelligence along with advanced semiconductors which is Nvidia’s specialization.
Nvidia becomes 4th US company to join the $2 trillion club
By touching the $2 trillion mark, the chipmaker also surpassed the tech supergiants Google and Meta in the process. Currently, Nvidia stands fourth in terms of market cap, just behind Microsoft, Apple, and Saudi Aramco in that order. Behind Nvidia are Amazon (5th), Google (6th), and Meta (7th).
If Nvidia would be a county pic.twitter.com/12O9RhfLAg
— Romano (@RNR_0) February 24, 2024
The milestone also makes Nvidia the only fourth U.S. company to touch the $2 trillion mark. The feat has been achieved only by Apple (AAPL), which closed past $2 trillion on August 20, 2020, becoming the first company to do so. Later Microsoft (MSFT), crossed the mark on June 22, 2021.
Notably, Microsft recently touched the $3 trillion mark in January 2024, becoming the second company to do so after Apple.
Google Parent Alphabet (GOOGL) had also briefly reached close to the mark back on November 8, 2021. However, it has never managed to close above the $2 trillion mark. The only other non-American company to have achieved the milestone is the state-owned national oil company of Saudi Arabia, Saudi Aramco.