Nvidia, the tech company best known for its gaming and graphics GPUs, has officially hit a $2 trillion market valuation, closing at the market cap for the first time today and becoming the first chipmaker to cross the milestone.

The announcement comes less than a year after the company reached the $1 trillion market cap and a little over a week after it was reported that the company reached $1.83 trillion, becoming the fourth most valuable company in the world, beating out Amazon and Alphabet for the spot.

The announcement comes just two days after Nvidia reported its Q4 earnings for the 2024 fiscal year. In the earnings report, Nvidia revealed that the company's quarterly revenue increased by 265%, noting that it made a record-breaking $60.9 billion in revenue last year, marking a revenue increase of 126% compared to 2022.

Nvidia's financial milestones come with no surprise. While the crypto and PC graphics cards markets have cooled, the tech giant has become a leader in AI, becoming a key chip supplier for companies looking to implement artificial intelligence in some capacity. Additionally, Nvidia will soon launch its next flagship AI chip, the HGX H200, promising more memory capacity and bandwidth, allowing it to handle "massive amounts" of data for generative AI.

Nvidia joins Microsoft and Apple as the three US-based companies to reach the $2 trillion market cap. Despite companies like Microsoft looking to make its own AI chips and rely less on Nvidia, a recent report from Reuters claims that Nvidia is working on a new $30 billion business unit that will focus on creating custom AI chips for companies.

Source: ign.com

BDST: 1352 HRS, FEB 24, 2024
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