The rapid growth of NVIDIA's market capitalization has made it not only the third most valuable company in the United States, but also larger than the economies of the vast majority of countries in the world in terms of gross domestic product (GDP), writes MarketWatch.
Image source: NVIDIA
Last Friday, at the close of trading, the price of the chipmaker's shares was $788.17, that is, its market value reached $1.97 trillion. Moreover, on Thursday the capitalization of the main beneficiary of the artificial intelligence boom exceeded $2 trillion.
According to International Monetary Fund data as of February 2024, analyzed by Forbes, NVIDIA’s capitalization is greater than the GDP of all countries in the world, with the exception of eleven. Among other things, NVIDIA's market value is greater than the GDP of countries such as Russia, South Korea and Australia.
Let us immediately note that comparing a company’s market capitalization with the country’s GDP cannot be considered correct, since GDP is a macroeconomic indicator of national production, and market capitalization reflects the total value of all shares of a publicly traded company.
NVIDIA shares have risen 238% over the past 12 months, driven by soaring demand for its compute accelerators, which are used to develop and run artificial intelligence applications in a variety of industries.
During its latest quarterly report, NVIDIA said it expects continued strong demand for its products going forward, sending its shares soaring.. As a result, the company's market capitalization increased by $277 billion on Thursday, February 22, which was the largest one-day increase in market value on Wall Street in US history.