Nvidia’s 2024 rise was closely linked to demand for graphics processors used in generative AI.
Nvidia’s market capitalization rose dramatically in 2024 as companies invested in computing infrastructure for generative artificial intelligence. Nvidia’s graphics processing units, or GPUs, are well suited to the parallel calculations used to train and operate large AI models.
The company also supplies software, networking products, and complete data-center systems. Its CUDA software platform helped create a large developer ecosystem around Nvidia hardware, strengthening the company’s position beyond the chips themselves.
Nvidia is sometimes described only as a gaming company because its GPUs became popular in personal computers. Gaming remains part of its business, but data-center demand became the major driver of its market-value expansion during the AI boom. Market capitalization still depends on the share price and shares outstanding.