NVIDIA Rides The AI Train To A $2 Trillion Market Cap. What Comes Next?

NVIDIA reported financial results for the fourth quarter and full-year 2023 this week, and I’m still picking my jaw off the floor. The chipmaker handily beat Wall Street expectations, with annual profits increasing a staggering 769% on mounting enthusiasm surrounding artificial intelligence (AI).

Already the world’s fourth-largest company by market capitalization ahead of Amazon, Alphabet and Meta, NVIDIA set another new record on Thursday when its market cap surged $277 billion, marking the biggest one-day increase for a single name in history, according to Bloomberg. It’s now valued at $2 trillion, which I was surprised to learn is greater than the combined market caps of all S&P 500 energy stocks.

NVIDIA now larger

Sparked in November 2022 with the launch of ChatGPT, the AI boom has supercharged demand for the kinds of advanced chips that NVIDIA produces, making the company a go-to “pick and shovel” play.