That Nvidia was in the striking distance of breaking the $4 trillion barrier was the theme of DailyPost 3205 and within five days the barrier was broken, is the topic of the day. While tons are being spoken and written across the globe, scarce little of space is provided for this stupendous achievement, first time in human history. It is a watershed moment in human history; for tech, for AI, for MNCs, stock markets, the US tech lead and that a company does the unimaginable; make the world dependent on it for propelling its future tech hunger. How distant are we from the big IT / AI behemoths, the less said the better.
India is on its own trip to becoming a developed country and the third largest economy, as it stands today Nvidia has attained a market value greater than the GDP of France, Britain or India. Hypothetically, it becomes the fourth largest after the US, China and Germany. What does it mean for the US IT MNCs? Nvidia ascendency challenges long-held supremacy by Apple and Microsoft – companies that once led the market at $3 trillion-plus valuations. The paradigm shift is that semiconductor chipmaker would shape the future of technology rather than traditional software giants.
No one has any idea as to where our grandiose chip manufacturing plans have reached. Nvidia has been on the supersonic trajectory since the end of 2022, precisely when ChatGPT hit the market. Surprisingly, DeepSeek could not make a dent. If we follow the Nvidia’s market capitalization timelines, it sounds more than a fairy tale. At the end of 2022 it was $360 billion and in May 2023, it crossed $1 trillion. A year later in Dec 2023, Nvidia’s market capitalization was at $1.22 trillion and in February 2024 it surpassed the $2 trillion mark and in June 2024 it broke the $3 trillion barrier and on Wednesday it became the first publicly traded company to surpass a $4 trillion valuation.
Why $4 trillion matters? It confirms that it is not a hype; the rapid tripling from $1 trillion (mid- 2023) to $4 trillion (mid-2025) took just 13 months. It reflects investors’ fiery enthusiasm for AI displayed by concrete revenue growth. The revenues have jumped at 69% year-over-year to $44 billion in Q1. With over 7.3 – 7.5% weight in the S&P 500, any major price movement in Nvidia now can significantly sway market indices and ETF benchmarks. As a US headquartered company, Nvidia’s market cap reinforces America’s tech leadership, and technological competitiveness- especially in AI.
IT’S TIME FOR NAYSAYERS OF AI TO DO A REALITY CHECK.
Sanjay Sahay
Have a nice evening.