Thanks to billionaires and businesses going mad for AI, Nvidia's market cap rockets past $3 trillion, pushing Apple into third place
Ten years ago, Nvidia was a successful graphics card company, with a pretty impressive market capitalisation of $10 billion. Now, thanks to huge revenue and profits, all driven by the tech world's desire to have everything and everyone infused with AI, Nvidia's share prices have reached such a point that its market cap is now an astonishing three trillion dollars—higher than Apple, Google, and Amazon.
Only Microsoft has a larger market cap, though the margins between it, Nvidia, and Apple are all very narrow. Well, if one can call tens of billions of dollars 'narrow.' For those unfamiliar with the term market capitalisation, it's a relative measure of how valuable a company is on stock markets, with the figure determined by a simple multiplication of the number of company shares by the current share price.
At the time of writing, Microsoft's shares sell for around $420, whereas Apple's are roughly half that figure. Nvidia, though, is deemed so valuable right now that buying just one of its shares will set you back over $1,200. That's almost enough to buy its best graphics card, the GeForce RTX 4090, though you'll still be short by $400 or so.
And it's all down to the fact that tech companies can't get enough of Nvidia's superchips, such as the Hopper H100 and the recently launched Blackwell range. These are monstrously huge and expensive processors (or in some cases, multiple processors) designed to handle the billions of calculations required for AI training and inference.
No retail prices exist for these products, as such, but you're looking at figures 20 times that of an RTX 4090 and companies like Meta, OpenAI, and X are buying hundreds of thousands of them. This is why revenues for Nvidia's data centre division have skyrocketed, with $22.5 billion being generated in the last three months—ten times that of its gaming division.
It's not just about revenue, though, as AMD will tell you. It took over $5.5 billion in revenue in the first quarter of this year but
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