In January 1999, Nvidia went public with a market capitalization of less than $1 billion, specializing in gaming chips and winning a contract with Microsoft for Xbox. Fast forward to November 2021, Nvidia became a favorite among retail investors for its gaming graphics and future potential in the metaverse. On February 22, 2023, Nvidia’s role in AI technologies like ChatGPT and Dall-E 3 led to a 14% increase in stock value. By May 24, 2023, Nvidia briefly surpassed a $1 trillion valuation as it capitalized on the AI frenzy.
As Nvidia’s revenue soared in the first quarter of 2024, reaching $26 billion from $7.2 billion the previous year, the demand for its chips skyrocketed. Big tech companies like Microsoft, Amazon, Meta, and Google increased their spending on AI investments, with Google alone planning to spend $12 billion every four months for the year.
By May 22, 2024, Nvidia reached a market capitalization of $2.6 trillion, solidifying its position as a key player in the AI landscape. With its critical role in providing chips for AI startups and tech giants alike, Nvidia continues to be at the forefront of the AI gold rush.
In summary, Nvidia’s evolution from a gaming chipmaker to a leader in AI technologies has driven its market capitalization to new heights, surpassing $2.6 trillion in May 2024. The company’s strategic positioning in the AI industry, coupled with the increasing demand from big tech companies, has propelled its stock value and cemented its status as a major player in the tech world.
Article Source
https://www.washingtonpost.com/technology/2024/06/27/nvidia-most-valuable-company-stock-key-moments/
