Nvidia’s 2024 market-value surge was closely linked to demand for its AI graphics processors.
Nvidia designs graphics processing units, or GPUs, that can perform many calculations in parallel. Those capabilities made its data-center chips especially important for training and running large artificial-intelligence models. As technology companies increased spending on AI infrastructure, demand for Nvidia’s high-end products grew rapidly.
The company was founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem. It first became famous for graphics hardware used in personal computers and video games, but later expanded into professional visualization, automotive systems, and data-center computing.
Nvidia’s market capitalization rose dramatically as investors anticipated continued AI-related sales and profits. A market-cap ranking reflects the price investors are willing to pay for shares, so it can change rapidly with expectations about future growth. Nvidia’s position therefore illustrates how a company can move among the world’s most valuable businesses without being the largest by revenue or workforce.