Congratulations on achieving this historic milestone Nvidia! It became the world’s first public company to reach a $5 trillion market capitalization. That impressive feat comes right on the heels of extraordinary jump in the company’s stock price. Since the start of the year, it is up over 50%. As of Wednesday’s close, Nvidia’s shares were up over 5.6%, having hit an intraday high of $212.19.
Like quilt-making, Nvidia’s success has resulted from soaring demand for its powerful graphics processing units—or GPUs. These powerful tools are used extensively within data centers for an array of applications from training large language models to perform inference. As indicative as this trend has been across the entire industry, Nvidia’s GPUs became the most important tools enterprises capitalizing on artificial intelligence technologies have ever needed.
Now we see how Nvidia and OpenAI have crafted a beautiful strategic partnership. Combined, they’re set to unleash a jaw-dropping 10 gigawatts of Nvidia systems to supercharge OpenAI’s operations. That show of cooperation further illustrates just how reliant the rest of the tech industry, including the fast-growing AI sector, is on Nvidia’s technology. It further cements Nvidia’s lead in the space.
Earlier this year, Nvidia grabbed headlines with its $1 billion investment in Nokia. In this case, Nokia and Nvidia are working together to incorporate Nvidia’s products into Nokia’s offerings. Now, collectively, they’re developing the world’s first AI platform to manage and orchestrate the future 6G network. The collaboration further signifies Nvidia’s aim to extend its reach beyond established computing industries.
We know that Nvidia’s market cap has catapulted. Yet it now exceeds the combined value of the total stock markets of all but the United States, China, and Japan. This unprecedented valuation follows just three months after the company became the first to surpass the $4 trillion milestone, showcasing its rapid growth trajectory.
In September, Nvidia announced they would invest as much as $100 billion into OpenAI. This brave step unequivocally demonstrates their dedication to making serious leaps in cutting-edge AI technologies. The company’s latest strategic investments and partnerships demonstrate an accelerating trend in the tech industry. This trend is driven by an ever-increasing, insatiable demand for more powerful computing.
Industry analysts attribute Nvidia’s stock surge to this relentless appetite for its GPUs, which are critical in powering AI applications and data processing. As enterprises of all types and sizes embrace AI-powered solutions, Nvidia will be well-positioned to continue leading the charge in tech innovation.
Ivan Mehta is an international consumer tech reporter for TechCrunch. He’s quick to point out that Nvidia’s success is changing the face of the tech industry. To check out more of his work or contact him, email him at im@ivanmehta.com. You can reach him via encrypted messages on Signal at ivan.42.
