NVIDIA surpassed a $1 trillion market capitalization in 2023 after its stock rose on demand for AI chips.
NVIDIA crossed the threshold in May 2023. Investors sharply increased their expectations for the company after strong forecasts connected its graphics processors and data-center systems with generative artificial intelligence.
NVIDIA began in 1993 as a graphics-chip company. Its graphics processing units, or GPUs, were first strongly associated with computer games, but their parallel-processing capabilities also made them useful for scientific computing, machine learning, and large-scale AI systems.
NVIDIA’s milestone was not the same as becoming the largest chip manufacturer by revenue or owning the factories that produce every chip it designs. NVIDIA is primarily a fabless semiconductor company and relies on manufacturing partners. Its market capitalization reflects investor expectations about future earnings as well as current business performance.