NVIDIA’s 2023 surge made it the world’s most valuable chip designer by market capitalization.
NVIDIA’s share price rose sharply in 2023 as investors anticipated exceptional demand for processors used in generative artificial intelligence. The company’s graphics processing units, or GPUs, became important tools for training and running large AI models. Its CUDA software platform also helped create a large developer ecosystem around NVIDIA hardware.
NVIDIA designs semiconductors but generally relies on outside foundries to manufacture them. This distinguishes it from integrated manufacturers such as Intel and from Taiwan Semiconductor Manufacturing Company, which produces chips for many other designers. The company’s growth therefore reflects both chip technology and the expanding AI-computing market.
The phrase “most valuable chip company” can refer to different groups, including designers, manufacturers, or all semiconductor businesses. NVIDIA’s market-cap leadership in 2023 was a stock-market ranking and changed as share prices moved.