Shares of Nvidia, the technology company at the heart of the AI revolution, have nearly quadrupled in just over a year, making the company one of the largest companies in the world, with a market capitalization that exceeds that of many major stock exchanges.
The recent rally in Nvidia stock has boosted its market capitalization, with its stock price increasing by 20 percent. The company is now worth $2.71 trillion (corporate market cap), closing in on Apple, which has a market cap of $2.91 trillion. Microsoft leads with a market cap of $3.19 trillion, while Meta Platforms is at about $1.20 trillion. Over the past year, NVIDIA's market cap has grown by about four times (3.88 times).
Nvidia's market capitalization has grown impressively over the years (according to enterprise market capitalization).
| date | Market capitalization |
|---|
| January 31, 2003 | $1.09 billion |
| January 31, 2019 | $87.11 billion |
| January 31, 2020 | $144.7 billion |
| May 31, 2022 | $466.8 billion |
| May 13, 2023 | $700.89 billion |
| May 31, 2024 | $2.72 trillion |
To put Nvidia's market capitalization in perspective, it exceeds the market capitalization of all listed companies in Germany, which is about $2.37 trillion as of March 2023. Nvidia's valuation is more than half the combined market capitalization of companies listed on India's stock exchanges, the BSE and NSE, which fluctuate around $5 trillion.
What does NVIDIA do well?
Nvidia's rapid growth is driven by the company's key role in the AI revolution. Its graphics processing units (GPUs) are essential for powering AI applications. Despite competition from general-purpose and custom AI chips developed by competitors and customers, Nvidia's GPUs remain the preferred choice.
Nvidia recently announced that demand for its H200 and Blackwell chips is outstripping supply, and CEO Jensen Huang expects continued demand for older versions of Nvidia's AI chips, along with strong interest in the latest Blackwell GPUs.
In contrast, Apple faces a tough road ahead of 2024. Regulatory scrutiny and declining iPhone sales overseas have weighed on the company's stock price. Apple's shares are up 9% since last year, but that growth is modest compared with rivals like Meta, Amazon, Google and Microsoft.
