Nvidia now valued at $2 trillion thanks to AI demand

Nvidia has shattered expectations, as the company’s market cap has exceeded $2 trillion for the first time in its history.

Nvidia might be one of the most valuable companies out there, beating out the likes of Google, Amazon, and more. Now, Reuters reports that the company has hit $2 trillion in pure market value, thanks to the surge in demand for AI-focused chips. Nvidia initially hit a trillion-dollar valuation back in 2023, and just nine months later, this figure has doubled.

It might not come as any surprise, but Nvidia has been doing incredibly well since the popularization of AI applications such as ChatGPT, which has caused a surge in demand for chips across the globe. Reuters notes that the rush for Nvidia chips can be viewed in a similar way to the gold rush of the 1800s, which is no small feat.

It remains to be seen whether or not the demand for AI products will keep up throughout 2024 as more companies begin to invest in disruptive tech.

As AI companies reveal new products, such as Sora AI, which can generate AI video based on a text prompt, companies are also beginning to work out issues with the software, such as ChatGPT’s hallucinations, and Gemini’s somewhat skewed outputs.

Does this mean that Nvidia is giving up on gamers?

Nvidia

Nvidia stocks hitting this value is purely based on the fact that their biggest and best supercomputers are being bought up by companies looking to invest in AI. While many of these chips rely on similar wafers to that of the RTX 4090 and similar, we already know that Nvidia is planning to release next-gen GPUs at some point in the future.

CEO Jensen Huang has also reassured gamers that they will not be quitting any time soon. However, the cost of the GPUs themselves may be affected by the demand that their corporate customers are drumming up thanks to the AI gold rush.