Nvidia’s role in the AI wave has made it a $2 trillion company

Nvidia has officially hit a $2 trillion market capitalization, making it the first chipmaker to cross the threshold. It’s also the third US company to reach over a $2 trillion valuation, right behind Apple ($2.83 trillion) and Microsoft ($3.06 trillion).

The California-based company has seen rapid growth over the past year due to its leadership in the AI chip market. Nvidia’s market cap reached $1 trillion only less than one year ago, and it left both Amazon and Alphabet in the rearview mirror as it became a $1.83 trillion company earlier this month.

As part of its earnings report last week, Nvidia revealed a record $60.9 billion in revenue in 2023, marking a 126 percent increase from 2022. Other companies, like OpenAI, Microsoft, and Intel, are working to decrease reliance on Nvidia with AI chips of their own, but matching its performance and production capabilities is a goal that’s still hard to reach.

Screenshot: Emma Roth / The Verge

Last year, Nvidia announced the H200, the successor to its flagship H100 GPU for AI models, which promises higher memory capacity and bandwidth. Nvidia plans on releasing the high-end GPU in the second quarter of 2024. It’s also working on a new $30 billion business that will make custom AI chips for other companies, according to a report from Reuters.