The California-based tech giant, founded in 1993, has ridden the explosive growth of artificial intelligence since the launch of ChatGPT in late 2022. Nvidia designs the graphics processing units (GPUs) that power large language models, making it a cornerstone of the AI revolution.
Nvidia Surpasses Microsoft and Apple in Market Value
With this latest valuation, Nvidia has now overtaken Microsoft and Apple, which previously peaked at the $3 trillion mark. Microsoft—one of Nvidia’s biggest customers—is deeply invested in AI development through its partnership with OpenAI.
This year alone, Nvidia stock has climbed more than 22% year-to-date, including a 15% rally over the past month. Over the last five years, Nvidia shares have skyrocketed more than 1,500%, reflecting the soaring demand for AI infrastructure.
AI Demand Outpaces Challenges in China
Despite its remarkable growth, Nvidia faces hurdles in China. The U.S. government’s export restrictions on high-end chips, including Nvidia’s H20 processors designed for the Chinese market, are expected to cost the company $8 billion in lost sales. CEO Jensen Huang said in May that the $50 billion Chinese market is “effectively closed” to U.S. chipmakers.
Speaking to CNBC, Huang acknowledged the significance of the restrictions, calling it a “tremendous loss” for the company’s global operations.