NVIDIA’s Capitalization Surpasses $2 Trillion Mark for the First Time

NVIDIA’s Market Cap Firmly Surpasses $2 Trillion

NVIDIA’s market cap, initially hitting the $2 trillion designator last week, was unable to maintain that position by the session’s end. However, the cap resurged last Friday, supported by insider information from Dell concerning the demand for NVIDIA’s accelerators.

Dell Technologies representatives voiced yesterday that requests for supply of artificial intelligence (AI) server systems based on NVIDIA accelerators exponentially increased over two quarters, from $1.6 to $2.9 billion. Of this amount, a product total equivalent of $800 million was shipped last quarter. Dell management emphasized that the demand for AI server systems far outstrips the $2.9 billion that manifested in order requests.

At the end of yesterday’s trading session, NVIDIA’s shares climbed 4%, with the market cap reaching $2.06 trillion for the first time in the company’s history. This milestone sets NVIDIA as the third-largest US company by market cap, trailing behind Microsoft and Apple whose market cap stands at $3.09 trillion and $2.77 trillion respectively. During yesterday’s session, NVIDIA’s share turnover reached $38 billion, showing a 66% increase since the beginning of the year.

Potential for AI in Future

During an economic forum at Stanford University, NVIDIA’s founder and CEO, Jensen Huang stated that AI may rival human intelligence in certain aspects within five years. He anticipates that by then, AI systems will manage to equal human performance on tests designed for people. However, he concurrently highlighted the distant reality of a “strong” AI due to continued disagreements among scientists about the functioning principles of the human brain.

Huang reinforced his recent assertion that a higher number of manufacturing plants will be required to meet the demand for computational accelerators. However, this will not be a proportional development given the rapidly increasing computational capabilities of these accelerators. As Huang explained, the performance of chips increases a million-fold over a decade.