Nvidia becomes first chipmaker to reach $2 trillion market value

Nvidia becomes first chipmaker to reach $2 trillion market value

Nvidia Corp., the world’s leading maker of artificial intelligence (AI) chips, achieved a historic milestone on Friday when its market value briefly surpassed $2 trillion US, making it one of the most valuable companies in the world.

Jensen Huang, CEO of Nvidia, holds up one of the company's high-end modules at the 2017 CES show in Las Vegas. Products like this are proving critical to artificial intelligence systems around the world.

The California-based company, which started as a graphics card manufacturer for video games, has seen its shares soar in recent years as demand for its products surged across various industries that rely on AI, such as cloud computing, autonomous vehicles, gaming, and health care.
Nvidia’s market value, which is the total worth of its shares on the stock market, reached $2 trillion US for the first time on Friday, before closing slightly lower at $1.99 trillion US. Only four other U.S. companies — Apple, Microsoft, Amazon, and Alphabet — have crossed the $2 trillion US mark before. Nvidia’s market value is now higher than the entire gross domestic product (GDP) of Canada, which was $2.12 trillion US in 2023, according to the International Monetary Fund.

Emil Savov, managing director of the MaRS Investment Accelerator Fund in Ontario. says Nvidia had a 'head start' on AI technology thanks to its graphics cards.

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Nvidia’s rapid rise to the top of the chip industry has been driven by its innovation and vision in AI, which is seen as the future of technology. The company has developed specialized chips that can perform complex calculations and process large amounts of data faster and more efficiently than traditional chips. These chips are essential for powering AI applications such as voice assistants, facial recognition, and natural language processing.

Nvidia has also been expanding its global presence and diversifying its supply chain amid a worldwide chip shortage that has affected many sectors, especially the automotive industry. The company has announced plans to build new plants in the U.S., Europe, and Japan, where it has received government support and funding. Nvidia has also partnered with some of Japan’s leading companies, such as Sony, Toyota, and Denso, to secure chip supplies and customers.

The Nintendo Switch uses some Nvidia components. The California-based company made its name with graphics cards used to drive video games on personal computers

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Nvidia’s founder and CEO Jensen Huang expressed his gratitude to the company’s partners and supporters at a ceremony in Taiwan over the weekend, where he unveiled a new AI supercomputer platform that will help tech companies create their own versions of ChatGPT, a popular AI system that can generate realistic text and speech. Huang said that Nvidia and Taiwan share common values of innovation, quality, and reliability, and that the collaboration will benefit both sides.

Nvidia’s success has also attracted some challenges and controversies. The company is facing regulatory hurdles and opposition from rivals over its proposed $40 billion US acquisition of Arm Ltd., a British chip designer that supplies chips to many of Nvidia’s competitors. Nvidia has also been criticized for its environmental and social impact, as its chips consume a lot of energy and generate a lot of heat and waste. Nvidia has said that it is committed to reducing its carbon footprint and improving its corporate governance.

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Source : CBC

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