Nvidia became the first chipmaker valued above $1 trillion in May 2023.
The company’s market capitalization passed the milestone after a sharp rise in its share price, driven largely by demand for graphics processors used in artificial-intelligence computing. Nvidia had already been a major supplier of graphics processing units, or GPUs, for gaming and scientific workloads.
Nvidia’s achievement is sometimes confused with Taiwan Semiconductor Manufacturing Company’s position in the semiconductor industry. TSMC manufactures chips for many designers, while Nvidia designs processors and platforms. Nvidia later became one of the world’s most valuable public companies, but market-cap rankings can change quickly because they depend on both share prices and the number of shares outstanding.