Nvidia Up 182% This Year to Market Cap of $3.4 Trillion

By Douglas A. McIntyre Published Dec 27, 8:45AM EST

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Nvidia Corp. (NASDAQ: NVDA) is the hands-down winner of the global artificial intelligence (AI) revolution.
There is no evidence that its place in AI industry will be weakened or even challenged.

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Nvidia Up 182% This Year to Market Cap of $3.4 Trillion — © vzphotos / iStock Editorial via Getty Images

If any company is the hands-down winner of the global artificial intelligence (AI) revolution, it is Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction). Its stock has risen 182% this year. Its market cap, at $3.42 trillion, puts it at number two globally, behind only Apple Inc. (NASDAQ: AAPL), which has a market cap of $3.92 billion. To gauge how large its market cap has become, it is over two times that of Meta Platforms Inc. (NASDAQ: META).

Nvidia’s five-year trend shows the extent to which its market value came out of nowhere. Its stock is up 2,263%. The S&P 500’s gain in the period is 86%. Apple’s share price is 257% higher.

It was impossible to see Nvidia’s success five years ago. It was a high-end graphics chip company, not considered in the same category of chip makers as Intel and AMD, which controlled the PC and server industries.

The key development of AI’s perceived huge contribution to global tech was Microsoft Corp.’s (NASDAQ: MSFT) $13 billion investment into OpenAI, the perceived industry leader, in April 2023. It put OpenAI’s total value at $29 billion. An investment round two months ago put that figure at $157 billion, meaning it increased five times in under two years.

For the past two years, Nvidia has continued to prove it is AI’s global engine. In the most recent quarter, its revenue was up 94% year over year to $35.1 billion. Per-share earnings were up 111% to $0.78. The numbers are expected to rise at nearly that rate for at least a year and perhaps much longer. That means it could have revenue nearly as much as Microsoft’s current figure in two years.

There is no evidence that Nvidia’s place in AI industry will be weakened or, at this point, even challenged.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.