Nvidia’s 2024 market value surged after it became a leading supplier of chips for generative AI.
Nvidia designs graphics-processing units, or GPUs, that can perform many calculations in parallel. Those capabilities made its data-center products especially valuable for training and running large artificial-intelligence models, including generative AI systems.
The company’s CUDA software platform also helped establish an ecosystem around its hardware. As cloud providers and technology companies expanded AI infrastructure, investors sharply increased their valuation of Nvidia, making it one of the world’s most valuable public companies.
Nvidia is often described as a chip company, but it primarily designs semiconductors and platforms rather than operating the factories that manufacture most of its leading-edge chips. Taiwan Semiconductor Manufacturing Company is a major manufacturing partner.