Nvidia's Value Continues to Soar Significantly
Nvidia's staggering $500 billion increase in market value within just six weeks propelled its valuation to $1.7 trillion, bringing it close to the market positions of Amazon and Alphabet and signalling a promising outlook within the technology industry.
Microchip manufacturer Nvidia experienced a significant surge in market value over a recent six-week period, adding approximately $500 billion. This rapid growth elevated the company's total valuation to $1.7 trillion, making it nearly as valuable as Amazon at that time. This positioned Nvidia as a contender to potentially surpass both Amazon and Alphabet, potentially becoming the third most valuable company in the United States.
The speed and scale of Nvidia's market value increase were remarkable. The $500 billion rise was equivalent to the entire market capitalization of established giants like JPMorgan ($504 billion at the time) and exceeded the valuations of Walmart ($454 billion) and Exxon ($406 billion).
Several factors fueled the rise in Nvidia's stock. The company significantly expanded its activities in the AI sector, introducing business intelligence tools for chatbots, copilots, and summarization through its microservices for enterprise-grade generative AI. This move substantially boosted the company's perceived growth potential, recognized by analysts such as those at Goldman Sachs, who raised their price target for Nvidia shares from $625 to $800 during that period.
Despite generating only $18 billion in revenue in its last reported quarter compared to Berkshire Hathaway's $93 billion, Nvidia's market capitalization was roughly double that of Berkshire's. This premium valuation was justified in investors' eyes because both companies reported similar operating profits ($10.4 billion for Nvidia vs. $10.8 billion for Berkshire), but Nvidia was demonstrating significantly faster growth, driven largely by the AI boom.
The surge in Nvidia's stock price also substantially increased the wealth of its largest shareholders. For instance, the fortune of co-founder and CEO Jensen Huang saw a significant boost during this period of rapid appreciation.
Update – April 2025
Since the $1.7 trillion market value mentioned in the original article, Nvidia's meteoric rise continued, reaching historic milestones. In mid-2024, Nvidia's market capitalization surpassed the $3 trillion mark, briefly making it the most valuable publicly traded company in the world, ahead of both Microsoft and Apple. This astonishing growth was primarily fueled by the insatiable demand for AI chips and the introduction of its next-generation Blackwell architecture GPUs.
Although the stock price and market value have shown significant volatility since then, influenced by market sentiment and macroeconomic factors, Nvidia consistently remains among the top 3 most valuable companies globally. As of April 2025, its market capitalization fluctuates approximately between $2.7 trillion and $3.4 trillion (the exact value changes daily). The company continues to dominate the market for high-performance GPUs essential for AI computing and is making substantial investments to strengthen its supply chain and build up manufacturing capacity in the United States.