AI powerhouse Nvidia saw its shares rise by around 5.2% on Wednesday June 5, pushing its market capitalization to $3.02 trillion (€2.9 trillion). This stunning growth has propelled Nvidia ahead of Apple, making it the world’s second-largest company, just behind Microsoft, whose market capitalization stands at $3.15 trillion. This milestone came just a day after Nvidia’s 10-for-1 share split, which could increase investor interest.
How did this Happen? AI Chip Demand drives Nvidia Share Price Sky High
Thanks to the AI boom, the chip maker’s share price has surged by 32% month-on-month, 145% year-to-date, and 214% over the past year.
Since 2023, there has been an increased demand for Nvidia’s GPUs due to machine learning, Large Language Model (LLM) training, and support for supercomputing capabilities.
The company holds a monopoly in AI chip manufacturing, with an 80% market share. Its customers include all major tech players such as Microsoft, Amazon, Meta Platforms, Alphabet, and OpenAI.
CFO Colette Kress revealed that 45% of Nvidia’s Data Centre revenue comes from cloud providers. Demand for Nvidia’s H100 has also been phenomenal, driven by Meta’s Lama 3.
The Meteoric Performance of Nvidia:
In the past year, Nvidia’s growth has been strong, with Data Centre revenue reaching $22.56 billion in the fiscal year 2025 first quarter, compared to $4.28 billion in the fiscal year 2024 first quarter, marking a 427% increase.
The company’s overall revenue from AI has surged by 262% to $26 billion in this quarter, up from $7.19 billion a year ago.
CEO Jensen Huang expressed confidence that Nvidia’s new supercomputing AI GPU, Blackwell, will spearhead the company’s growth next year. He said:
“We are ready for our next wave of growth. The Blackwell platform is in full production and is a cornerstone for trillion-parameter-scale generative AI.”
Huang hinted at Nvidia’s strategy to diversify its product offerings, which is spreading to consumer internet companies, automotive manufacturers, and healthcare providers, rather than focusing solely on cloud businesses.
Also Read: Interesting Facts about Firing & Reinstating of Sam Altman in OpenAI
What’s the Story Behind Nvidia? The Timeline of World’s Second Largest Company
Nvidia’s story began in 1993 when Jensen Huang, Chris Malachowsky, and Curtis Priem came together to start the company. All three were experts in technology and graphics and dreamed of creating a company that could revolutionize computer graphics.
Early Years:
Nvidia’s first product, NV1, was launched in 1995, which was a graphics accelerator card. However, this product did not fare well in the market. Nvidia learned and improved its technology over the next few years, launching new products.
Arrival of the GeForce Series:
In 1999, Nvidia launched its first GeForce GPU (Graphics Processing Unit), which proved to be a game-changer for gaming and graphics. The GeForce 256 was the world’s first GPU capable of real-time graphics rendering. This was a big success for Nvidia and made it a leader in the gaming industry.
And Development:
During the 2000s, Nvidia expanded its technology and started making GPUs for professional graphics, computing, and mobile devices. In 2006, Nvidia introduced CUDA (Compute Unified Device Architecture), which allowed developers to use Nvidia GPUs for high-performance computing.
AI And Machine Learning:
In the 2010s, Nvidia shifted its focus to artificial intelligence (AI) and machine learning. They created GPUs that could efficiently handle AI and deep learning tasks. This move made Nvidia a prominent player in the AI and data center industries.
Recent Success:
In the 2020s, Nvidia has further accelerated its growth. They have developed advanced GPUs and computing solutions for gaming, data centers, AI, healthcare, and automotive industries. Due to Nvidia’s work in AI and the demand for GPUs, the company’s market capitalization has grown rapidly, and in 2023, Nvidia crossed the $3 trillion mark, which was a major achievement.
CEO Jensen Huang:
Nvidia’s CEO, Jensen Huang, who is also a co-founder of the company, has provided strong leadership and vision to the company to face every challenge. He has always thought ahead and launched innovative products that have kept Nvidia in a strong position in the market.
Today, Nvidia is one of the leading technology companies in the world. Their GPUs are being used in every field from gaming to supercomputing. Nvidia’s story is one of going from a small startup to a global tech giant, which inspires and shows what can be achieved with vision, innovation, and dedication.
Nvidia has been around for 30 years now. Very few people think in a 30-year time frame. And the strange thing is that, by fulfilling their decades-long vision, today Nvidia’s technology is also helping us do a lot more in a very short time.
Nvidia’s journey is very inspiring. Starting from a small startup 30 years ago, today Nvidia is one of the big companies in the world. Jensen Huang’s vision and leadership have given the company the courage to move forward in the face of every difficulty. Today, Nvidia’s technology is everywhere, and all this happened because a CEO dreamed and had the courage to fulfill it.
