Nvidia became the first company to reach a $3 trillion market capitalization in 2024 because of investor enthusiasm for AI chips.
Nvidia crossed $3 trillion on June 5, 2024, briefly passing Apple in market value. The company designs graphics-processing units and related systems that are widely used to train and run artificial-intelligence models.
Nvidia’s graphics processors were originally associated mainly with computer games. Their ability to perform many calculations in parallel made them valuable for machine learning, while Nvidia’s CUDA software ecosystem helped developers use the hardware for scientific and AI workloads.
Nvidia does not manufacture most of its chips in its own factories. It designs chips and relies on semiconductor foundries and manufacturing partners. Market capitalization reflects investors’ expectations about future earnings, so it can rise sharply when demand forecasts change.