On Wednesday, Nvidia became the first company in the world to reach a market capitalization of $5,000 billion. Here’s a look back at this historic achievement, which follows a more than 50% rise in the company’s stock price since the start of the year.
Nvidia Reaches $5,000 Billion in Market Capitalization
On the list of the world’s most valuable companies, Nvidia has long held the title of the most valuable company of all time. However, the computing powerhouse made headlines again yesterday by surpassing the $5,000 billion market capitalization mark for the first time:
Ranking of the world’s most valuable companies
What makes this achievement all the more remarkable is that just last July, Nvidia had already set a world record by surpassing $4,000 billion in market capitalization. Now, Apple and Microsoft have also joined this very exclusive club.
Since the beginning of the year, NVDA stock has risen by more than 50%:
Nvidia’s NVDA stock price (daily data)
This strong momentum comes as Nvidia announced on Tuesday that seven new supercomputers dedicated to artificial intelligence would be deployed for the U.S. government. At the time, Jensen Huang, Nvidia’s founder and CEO, spoke of a new industrial revolution:
We are on the cusp of the AI industrial revolution that will define the future of every industry and every nation. It is imperative that America lead the race toward the future; this is the defining moment of our generation. The next wave of inventions, discoveries, and progress will depend on our nation’s ability to develop its AI infrastructure. Together with our partners, we are building the most advanced AI infrastructure ever created, thereby laying the foundation for a prosperous future for America and ensuring that global AI is built on American innovation, openness, and collaboration, for the benefit of all.
On the same day, the company also announced a $1 billion investment in Nokia. In the second quarter, Nvidia reported revenue of $46.74 billion and a 61% year-over-year increase in profit.
