How did Nvidia achieve a $5 trillion valuation?

Nvidia briefly surpassed a $5 trillion valuation in October due to the high demand for its AI chips and its dominant position in the data center chip market.

What is Nvidia's market share in data center chips?

Nvidia holds an 81% market share by revenue for data center chips, driven by global companies' demand for its AI technology.

What are Nvidia's future revenue projections?

Nvidia projects its total sales to reach new records, anticipating around $500 billion in revenue by 2026.

Home / Technology / Nvidia Surpasses $5 Trillion Valuation on AI Boom

Nvidia Surpasses $5 Trillion Valuation on AI Boom

7 Feb

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Summary

Nvidia briefly topped $5 trillion valuation in October.
Company holds 81% market share in data center AI chips.
Nvidia projects $500 billion in revenue by 2026.

Nvidia Surpasses $5 Trillion Valuation on AI Boom

Tech giant Nvidia reached a landmark achievement, briefly exceeding a $5 trillion valuation in October, propelled by its pivotal role in the AI boom. The company's dominance is underscored by its 81% market share in revenue for data center chips, a result of high global demand for its AI technology.

Nvidia's stock has seen explosive growth since the debut of OpenAI's ChatGPT in November 2022. Sales and profits experienced over 60% year-over-year growth in the October quarter, surpassing Wall Street's predictions. The company has unveiled its next-generation Vera Rubin chip, poised to be a key growth driver.

Founded in 1993, Nvidia initially focused on graphics processing units (GPUs) for gaming, later finding them well-suited for AI training. Beyond GPUs, Nvidia offers integrated server solutions and specialized software, aiming to establish "AI factories" for future data centers. Partnerships with Uber and the US Department of Energy highlight its expansion into autonomous driving and quantum computing.