Nvidia reached a US$3 trillion market capitalization in June 2024, becoming the first semiconductor firm to do so.
Nvidia began in 1993 and became known for graphics processing units, or GPUs. These chips were first strongly associated with computer graphics and video games, but their parallel-processing capabilities later made them highly valuable for data centers and artificial-intelligence workloads.
Demand for Nvidia’s data-center hardware, software, and networking products drove a dramatic increase in revenue and investor interest. A ten-for-one stock split in June 2024 changed the per-share price without changing the company’s total market value; the valuation milestone came from the company’s overall equity value.
The phrase semiconductor firm can be confusing because many technology companies design chips without manufacturing them. Nvidia primarily designs processors and relies on outside foundries, including Taiwan Semiconductor Manufacturing Company, for production.