Nvidia became the first company to reach a $1 trillion market capitalization during the artificial-intelligence-driven stock rally of 2023.
Nvidia crossed the threshold in May 2023 after reporting a powerful outlook for demand for data-center chips used in artificial-intelligence systems. The company’s graphics-processing units became especially important for training and running large machine-learning models.
Nvidia had originally become famous for graphics processors used in video games, but its CUDA software platform and specialized hardware helped it expand into scientific computing, cloud infrastructure, and AI. Investors sharply increased the value assigned to the company as major technology firms announced large AI investments.
The milestone was separate from Nvidia’s later move above $3 trillion in 2024. It also differs from a company’s revenue or profit: market capitalization reflects the stock market’s valuation of all outstanding shares at a given time.