​Processor maker Nvidia is closing in on the $1 trillion market capitalization mark after shares surged 24% in one day on demand for powerful chips for artificial intelligence models. How Nvidia became the envy of competitors…

Nvidia is known for its graphics processors and was founded in 1993. The company is growing, and the last few years, while they have also brought temporary setbacks, have been the best in its history.

Nvidia became worth ten times more on the stock market than three and a half years ago, and the market capitalization reached a record 939 billion dollars.

Nvidia has grown because its chips are used to run and train algorithms used to build various AI applications and models. Nvidia is well ahead of its competitors in this regard, and sales of these processors have grown beyond all expectations.

Sales of high-end data center processors are also growing significantly.

Nvidia started investing in AI processors a few years ago, but the emulation fueled by ChatGPT’s success has led to exceptional sales growth, especially because these are chips with enough memory to “train” AI language models efficiently and quickly. Since these processors are by no means cheap, the company’s turnover is good.

For the current quarter, sales will reach $11 billion, which is 50% more than analysts predicted.

Until 2018, Nvidia’s capitalization never exceeded $170 billion, and at the beginning of 2019 it fell below $100 billion. In the fall of 2020, it first crossed the threshold of 300 billion dollars in capitalization, and in November 2021 it reached 821 billion.

It dipped below $300 billion in the fall of 2022, but has performed very well since then, reaching $940 billion.

The most valuable companies worth more than $1 trillion are Apple, Google, Microsoft, Amazon, and Saudi Aramco.

Nvidia came close to them, but was ahead of Tesla Motors ($580 billion) and Meta ($647 billion).

Nvidia has 26,000 employees, double the number at the start of 2020.

Sources: Washington Post, Reuters, New York Times