Nvidia has reached a capitalization of over 5 trillion dollars. A historic achievement, the company was in fact the first in the world to exceed this threshold. The semiconductor giant, the absolute protagonist of the artificial intelligence revolution, has seen its stock gain more than 50% since the beginning of the year. Founded as a manufacturer of graphics cards for video games, Nvidia has transformed itself in just a few years into the main supplier of hardware infrastructure for AI. Its value reflects the enormous growth in demand for advanced chips for data centers and machine learning applications, which has redefined the balance of the global technology sector.
The dimensions
Nvidia’s market capitalization is far higher than that of nearly every major global company and even entire industries or national markets. CNBC tried to give an idea of the size by highlighting Nvidia’s value
- equals twice Amazon
- six times JPMorgan Chase
- ten times Exxon Mobil
- McDonald’s twenty-three times
- twenty-five times Disney
- fifty times Nike
- ninety-six times Ford
- even over three thousand times JetBlue.
In comparison, the average capitalization of a company included in the S&P 500 index is approximately $124.8 billion, a figure almost forty times lower than the value achieved by the chip giant.
Nokia invests $1 billion to develop 6G
CEO Jensen Huang has already announced that Nvidia expects $500 billion in AI chip orders and the construction of seven new supercomputers for the US government. The initiative consolidates the company’s role as a key partner for technological and infrastructural development related to AI. In parallel, Nvidia also announced the acquisition of a $1 billion stake in Nokia, launching a strategic collaboration for the development of sixth generation (6G) mobile technology. The agreement strengthens Nvidia’s presence in areas beyond cloud computing and hardware, extending its ecosystem to the interconnection of networks, AI and supercomputing.
The tall tech giants
Nvidia’s milestone comes amid euphoria for technology stocks. On Tuesday, Apple and Microsoft also hit record capitalizations, both above $4 trillion. The rally in AI stocks pushed US indexes to new all-time highs, while fueling fears of market overheating. Despite this, analysts continue to consider Nvidia a central player in the global race for computing power, indispensable to support the evolution of generative artificial intelligence. However, there is no shortage of concerns related to a possible bubble. The International Monetary Fund and the Bank of England recently warned that a sudden drop in interest in AI could destabilize global stock markets.
