A surge in Nvidia’s market cap value is largely attributed to the high demand for the company’s AI-focused chips, which are integral to various innovative applications.
Nvidia’s market value increased from $1.2 trillion at the end of 2023 to $3.28 trillion by the end of 2024, making it the world’s second-most valuable publicly traded company, following Apple.
Throughout the year, Nvidia has temporarily ranked as the most valuable company as well, surpassing both Apple and Microsoft in market cap terms. In October, the company’s market capitalization index briefly reached $3.53 trillion, while Apple’s equivalent indicator was $3.52 trillion.
Such a significant growth in market capitalisation was driven by the growing demand for artificial intelligence (AI) technologies. Throughout 2024, Nvidia introduced a few new hardware and tools facilitating AI implementation, including the Blackwell B100 and B200 GPUs. The company’s innovative solutions enhance generative AI capabilities and solidify its position in high-performance computing.
Additionally, Nvidia launched the Jetson Orin Nano Super Developer Kit, priced at $249, to make AI development more accessible to smaller players. This platform for prototyping edge AI applications supports popular generative AI models, including large language models and vision transformers.
The chip producer also formed numerous partnerships across key sectors to expand its influence in the AI market. In 2024, Nvidia partnered with Google to develop its next-generation quantum computing devices. The company also expanded cooperation with the technology consultant Accenture to drive the adoption of artificial intelligence in the business environment and boost orders for the chip manufacturer’s products. By the end of the year, Nvidia also finalised its acquisition of the Israeli startup Run:ai, gaining software, which helps owners of intelligence computing gear get the most out of their hardware.
At the background of the notable market cap growth, Nvidia’s revenue for the quarter ended October 27 reached $35.1 billion, a 94% surge compared to the same period last year and a 17% rise relative to the previous quarter.
Nvidia’s CEO, Jensen Huang, noted in November that the observed trends in AI services which fueled the corporate growth were “really just beginning,” indicating expectations for continued growth and industry modernisation in the coming years. Per media reports, Nvidia not only plans to continue benefitting from the so-called artificial intelligence boom but also aims to launch the next version of compact computers for humanoid robots in the nearest future, anticipating a surge in the development of the robotics sector.
