Nvidia’s 2021 market-cap surge was closely linked to demand for graphics processors used in artificial intelligence.
Nvidia designs graphics processing units, or GPUs, that became central to training and running many artificial-intelligence systems. Its CUDA software platform and data-center hardware helped make Nvidia a leading supplier for modern machine-learning workloads.
The company originally became famous for graphics chips used in personal computers and video games. It later expanded into professional visualization, automotive technology, and data-center computing, broadening the businesses considered by investors.
Nvidia’s market capitalization has been especially sensitive to expectations for AI infrastructure spending. Its market value can therefore change sharply when major customers increase or reduce plans for data centers and accelerated computing.