NVIDIA, the tech company best known for manufacturing graphical processing units (GPUs) for gaming, has officially hit a $2 trillion market valuation. It has closed the market cap for the first time today, becoming the first chipmaker to cross the milestone.
The announcement arrived just months after the company reached a $1 trillion market cap and just over a week after the company reached $1.83 trillion, becoming the fourth most valuable company in the world, defeating Alphabet and Amazon.
During the Q4 earnings report for the 2024 fiscal year, NVIDIA reported that the company’s quarterly revenue increased by 265%, noting it made a record-breaking $60.9 billion in revenue in 2023, which is a 126% increase compared to 2022.
NVIDIA’s financial milestones are no surprise given their success in AI, becoming a key chip supplier for companies looking to take advantage of the technology. What’s more, NVIDIA will soon launch the HGX H200, an AI chip with promises expanded memory capacity and bandwidth, letting it handle “massive amounts” of data for generative AI.
The company joins Microsoft and Apple as three US-based companies to reach the $2 trillion market cap. Despite companies like Microsoft that want to make their own AI chips and rely less on NVIDIA, the GPU maker is working on a new $30 billion business unit to stay at the top of the competitive ladder.