NVIDIA’s 2024 market-cap rise was strongly associated with demand for graphics processors used in artificial intelligence.
NVIDIA originally became known for graphics processing units, or GPUs, used in personal computers and video games. Their ability to perform many calculations in parallel also made them valuable for machine learning and other artificial-intelligence workloads.
The company’s CUDA software platform helped developers use NVIDIA hardware for general-purpose computing. As generative-AI systems expanded, demand grew for data-center accelerators and related networking equipment, increasing investor expectations for NVIDIA’s future revenue and profit.
Market capitalization can rise rapidly when investors anticipate strong growth, but it can also be volatile. NVIDIA’s valuation should not be confused with the total value of every company involved in AI; it reflects the stock-market value of NVIDIA’s outstanding shares.