Nvidia Achieves $3.4 Trillion Market Cap

Artificial intelligence chip manufacturer Nvidia (NVDA) is still a stock market darling and one of the most successful companies in the world. In fact, they have recently hit a market milestone.

Nvidia just passed a market cap of $3.4 trillion, which places them only second in the world behind Apple (AAPL), which has a market cap of $3.57 trillion. Microsoft (MSFT) comes in third with $3.11 trillion.

If Nvidia continues to push forward and the demand for their chips remains high, they could be the first company in the world to hit a market cap of $4 trillion. It was just back in 2023 that Nvidia became the seventh US company to have a market cap of $1 trillion or more, and it has shot up ever since.

Nvidia has a new Blackwell platform that has already sold out for all of 2024, according to reports. This platform comes with 1.4 exaflops of processing power, and that level of power is required to run AI programs that are notorious processing power drains.

Will the AI Bubble Burst?

There has been a lot of talk about the artificial intelligence market simply imploding in the near future, but so far, there seems to be no indication that this will happen. Instead, the demand continues to increase at an insane pace, with companies like Nvidia having trouble keeping up with the demand.

So many companies are moving to AI generation of some kind, whether that is in chatbot form or for image generation or to create videos, sounds, or text. There are endless uses for the technology, especially in technology and creative arts fields, and Nvidia is simply doing its best to meet those demands. They have also done very well at anticipating the problems of the next generation of AI technology and made their chips as future proof as possible with powerful capabilities that should make them useful for at least a while longer.

Since early 2023, Nvidia’s stock has multiplied tenfold, and there seems to be no slowing down. If the bubble for AI products were to burst anytime soon, we would see some indications of it, but there are no signs that this will happen in the near future. AI is the technology of this age, and it is being adopted at a remarkable rate by companies that are not even in the tech field. Nvidia’s position on the stock market is likely assured for the long term.