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Nvidia Reaches US$ 4 Trillion In Market Value, Driven By The Surge In Global Demand For AI-Focused Chips
Nvidia made history on Wednesday, the 9th, by becoming the first company to surpass a market value of US$ 4 trillion. This milestone was briefly reached when shares hit US$ 163.93. After that, there was a slight drop, and the stock closed at US$ 162.88, valuing the company at US$ 3.97 trillion.
The appreciation is driven by high demand for artificial intelligence chips. Since the launch of ChatGPT from OpenAI, the sector has come into the spotlight, transforming Nvidia into a global leader. Big tech companies are racing to acquire the company’s processors.
To give an idea of the magnitude of the value, US$ 4 trillion is equivalent to about R$ 22 trillion at the current exchange rate. This is almost double Brazil’s Gross Domestic Product (GDP) in 2024, which stood at R$ 11.7 trillion, according to IBGE.
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Surge In Revenues Fuels The Giant
The moment is one of euphoria within the company founded by Jensen Huang. Only in the last quarter, Nvidia saw a 69% jump in revenue.
At the close of the 2024 fiscal year, growth was even more impressive: 112%, according to a report released in February.
The recent trajectory, however, has not been without obstacles. One of the most tense moments came in April when former President Donald Trump imposed high tariffs on international trade.
The measure raised alarms among executives and investors.
The fear was that the tax hike would hit semiconductors hard, the foundation of Nvidia’s business.
After pressure, Trump backed down and removed chips from the list of taxed items. The decision unlocked the company’s value, which produces most of its components in Taiwan.
Demand For AI Chips Remains Strong
According to market analysts, Nvidia is at the forefront of the artificial intelligence revolution.
Dan Ives of Wedbush Securities states that “there is one company in the world that is the foundation of the AI revolution, and that is Nvidia.” He points to Jensen Huang as the leading figure behind the technology at this time.
Over the past two years, the demand for specialized AI chips has exploded. This growth is reflected in Nvidia’s market value, which has surpassed companies like Microsoft (valued at US$ 3.7 trillion) and Apple.
It is now the sole leader in the group known as the Magnificent Seven — composed of Apple, Google, Amazon, Meta, Microsoft, Nvidia, and Tesla.
The value of Nvidia has also skyrocketed over the past few years. In 2021, the company was valued at US$ 735 billion. By the end of 2024, it had reached US$ 3.4 trillion. Now, it is approaching the US$ 4 trillion mark.
Giant Clients Maintain Accelerated Production
One of the factors explaining Nvidia’s success is the quantity of chips sold to large clients. In 2024, according to the Financial Times, Microsoft purchased about 485,000 units of the company’s chips. Meta came in second, with 224,000 units acquired.
Even smaller institutions are facing long waits to get GPUs. An example is the Federal University of Goiás (UFG), which waited several months to receive 64 units of the B200 chips, with an investment of R$ 40 million.
Despite the waitlist, Nvidia maintains its leadership because competitors still cannot keep up.
Many companies are developing their own AI processors, but the production pace is still slow.
Competition Tries To Catch Up
Google has been advancing with its line of chips called Tensor. Amazon is betting on the Trainium processors.
Meanwhile, Microsoft has developed the Maia, a chip that supports large-scale language models, focusing on the Azure platform. However, none of these solutions have replaced Nvidia as the supplier.
Every month, new AI solutions emerge in the market. OpenAI, for example, constantly announces innovations.
This pressures big tech companies to increase investments and, consequently, the demand for Nvidia’s chips continues to rise.
Company’s History Shows Success Came Ahead Of Its Time
Founded in 1993, Nvidia began producing graphics chips in 1999. These processors were essential for the gaming industry, driving consoles like Xbox and PlayStation.
They also became popular in supercomputers, cloud systems, and cryptocurrency mining.
Unknowingly, the company was preparing for the current moment. The technology created for gaming proved ideal for meeting the demands of artificial intelligence. As a result, Nvidia is now reaping the rewards of a bet made decades ago.
With information from Isto é Dinheiro.
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