Nvidia recently achieved a significant milestone, briefly becoming the first company to reach a $4 trillion market capitalization. While its value has since slightly dipped to $3.972 trillion, it remains the world’s most valuable company, surpassing Microsoft and Apple.
This remarkable growth is largely attributed to the surging demand for AI chips following the launch of ChatGPT in November 2022. Nvidia’s stock has soared over 15x in the past five years, with a 15% month-over-month increase and 22% year-to-date.
The company’s internal financials also reflect strong performance, with first-quarter revenue up 12% quarter-over-quarter and 69% year-over-year. Data center revenue, specifically, increased 73% compared to last year, now accounting for over 88% of total revenue.
CEO Jensen Huang stated, “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.” This marks a significant shift from Nvidia’s previous focus on gaming GPUs.
