New Delhi: Nvidia has surged to become the third most valuable company on Wall Street, overtaking Alphabet briefly, with its market capitalization reaching an impressive $1.83 trillion. This surge in valuation, driven by the increasing demand for its chips amid the artificial intelligence (AI) boom, has propelled Nvidia’s stock to new highs.
Since the beginning of the year, Nvidia has witnessed a staggering increase in its market cap, adding $650 billion, surpassing even the entire market cap of Tesla. Its dominance in the high-end AI chip market, accounting for around 80% of it, has been a significant factor in this remarkable growth, with the company’s stock rising by 47% this year alone, following a tripling in value in 2023.
The journey to this milestone has been remarkable for Nvidia, which became the ninth company to reach the $1 trillion mark in May 2023. Over the years, its founder and CEO, Jensen Huang, has seen his net worth soar, currently standing at $65.3 billion, reflecting the company’s phenomenal success.
Nvidia’s trajectory contrasts starkly with that of its competitor Intel, whose market valuation stood at $185 billion in comparison to Nvidia’s $1.8 trillion in 2024. Such achievements underscore Nvidia’s dominant position in the global AI chip production landscape.
The company’s recent surge in value coincides with reports of potential initiatives to bolster chip-building capacity for AI, signaling further growth opportunities. However, analysts caution that Nvidia’s upcoming quarterly report will be pivotal, as expectations are high, and any disappointment could dampen Wall Street’s enthusiasm for AI-related stocks.
