The Trillion Dollar Club

The group of companies that reached the trillion dollar market capitalization is very limited. In fact, it’s a very exclusive club made of no more than ten publicly traded companies. Even more elite is the club that holds the $ 3 trillion milestone. Only Apple and Microsoft have ever reached this record so far. In the summer of 2023 Apple was the first to do so, while Microsoft followed earlier this year. They could be joined by Nvidia, which has the potential to get there soon and looks well on its way given that it is currently at $ 2.5 trillion already. What is so impressive is that in the last twelve months, the US chipmaker doubled its equity value from $ 1 to 2 trillion.

The Santa Clara, California based company delivered another very strong quarter this week, further boosting its record-breaking valuation. The bullish sales forecast was ahead of expectations and confirmed great momentum for AI computing spending. Meanwhile, its data-center division showed strong growth. Altogether, with the announcement of a higher quarterly dividend and a 10-for-1 stock-split, this earnings report as a whole was yet another positive signal of confidence to investors.

Nvidia is perfectly positioned in the current technology environment, characterized by the boom in generative AI. Currently, the company is well ahead of the competition thanks to its unique combination of hardware and software. For one, the high-power processors it makes are unique and difficult to replicate. These are the graphics processing units (GPUs), used for computer graphics for the purpose of generative AI models. At the same time, its computing platform and programming model for its own use and its customers is revolutionary and very advanced. The main advantage over competitors is the closed ecosystem and the strong capacity to use fabrication plants to design and assemble the chips. As things stand, Nvidia is set to continue dominating the AI chip market and possibly reach further record valuations.

We thank you for your continued support.

The FAM team


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