Nvidia was the first company to reach a $1 trillion market capitalization with artificial-intelligence chip demand as a major growth driver.
Nvidia crossed the $1 trillion mark in May 2023 after forecasting exceptionally strong demand for data-center products used in generative artificial-intelligence systems. Its graphics-processing units, or GPUs, became important for training and running large neural networks because they can perform many calculations in parallel.
The company was founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem. It initially became known for graphics chips used in personal computers and video games, but its CUDA software platform helped developers use Nvidia hardware for scientific computing and machine learning.
Nvidia’s market value was especially sensitive to expectations about future AI infrastructure spending. That means its valuation could move sharply with earnings forecasts, semiconductor supply conditions, and competition from companies developing alternative AI accelerators.