Nvidia’s market value doubled in 2024, adding $2 trillion amid AI rally

Nvidia’s market value soared from $1.2 trillion in 2023 to $3.28 trillion in 2024, by massive demand for its AI-powered GPUs. Its data center sales are expected to rise from $110 billion to $200 billion by 2025, with dominance in AI technology.

Nvidia was among the greatest Wall Street successes of 2024 as its market valued more than $2 trillion, which is $3.28 trillion at year-end.

This made Nvidia the world’s second most valuable company, ranking after Apple with a value of nearly US$4 trillion. Nvidia largely deserves its exponential increase in demand because it’s playing a big role by driving AI-related technology through their chips.

Nvidia’s AI dominance

Nvidia’s market growth has been rapid, mainly driven by the rising demand for AI. Nvidia’s graphics processing units (GPUs) have become essential for creating and running AI technologies, like ChatGPT. These GPUs are the core of AI models, making Nvidia’s hardware crucial to the AI revolution.

With the rise of generative AI technologies, companies like Microsoft, Google, OpenAI, and Cohere turned to Nvidia for its specialized chips to train and run complex AI models.

This surge in demand for AI-powered technologies boosted Nvidia’s revenue and market value. From $1.2 trillion at the end of 2023, Nvidia’s market value more than doubled to $3.28 trillion by the end of 2024 with strong investors.

This made Nvidia to have competitors like Microsoft and Google. Its stock price soared as investors sought to profit from the booming AI market.

As Apple continued to lead in market value, approaching a $4 trillion valuation, driven by its planned AI improvements to boost iPhone sales. By the end of 2024, Microsoft was in third place with a $3.1 trillion market value, while Alphabet and Amazon were valued at about $2.3 trillion each. These major tech companies helped raise global stock indexes in 2024, with the S&P 500 up by 23.3% and the Nasdaq rising by 28.6%.

Nvidia stands out from its competitors because of its combination of advanced hardware, software capabilities, and strong business partnerships. Other companies, like Amazon and Google, are making progress in AI, but they lack the complete ecosystem Nvidia has built.

Nvidia’s data center sales are expected to rise significantly, from $110 billion in 2024 to $200 billion in 2025, while competitors like Broadcom and Marvell are projected to generate much smaller sales.

Strategic investments and Acquisitions strengthen Nvidia

However, Nvidia’s success in 2024 wasn’t just about responding to demand it also made strategic investments and acquisitions to solidify its leadership in AI technology.

By 2024, Nvidia had allocated more than $1 billion in strategic investments to AI start-ups and corporate deals, growing 15 percent year over year.

The company put money into 50 start-ups, including xAI (Elon Musk’s AI venture) and OpenAI and made a few key acquisitions, such as Run.ai, specializing in AI, as well as CoreWeave, an AI cloud computing provider. This involvement of Nvidia with AI is not just about investment in start-ups.

CoreWeave was valued at $7 billion a year ago; it is now estimated at $35 billion. This, of course, was mainly because of the investment by Nvidia. Besides that, Nvidia bought companies like Deci, Shoreline.io, and Brev.dev. These purchased companies enhance Nvidia’s portfolio in medical technology, gaming, drones, and even humanoid robots.

Nvidia’s growth was fueled not just by the high demand for GPUs, but also by its strong presence in various industries that rely on AI. By supporting AI start-ups through its Inception program and investing in new technologies, Nvidia became a key player in the AI revolution.

However competitors like Microsoft, Google, and Amazon, are working on creating their own alternatives to Nvidia’s GPUs, which could hurt Nvidia’s business. The company also faces scrutiny from regulators in the U.S., Europe, and China.

Despite the challenges and competitions, Nvidia stays on top with its AI and semiconductors, where it leverages hardware, software, and strategic partnerships.

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