Nvidia’s market cap crosses $2.5 trillion as it controls 95% of AI chipset market

Nvidia AI

Nvidia, the popular graphical processing unit (GPU) manufacturer, has announced a record quarterly revenue of $26.0 billion in its latest financial results for the first quarter of 2024. The company reported a profit of $14.881 billion, which is a 629% growth compared to the corresponding quarter last year.

These fiscal results mean that Nvidia now controls up to 95% GPU market and it’s expected to grow even further in the coming years. Nvidia is also now trading with a market cap above $2.5 trillion for the first time in its history.

Nvidia is now the third largest tech company in the world behind Microsoft and Apple. The company is expected to grow even more later this year when it begins shipping its latest Blackwell AI-based chipset, which was recently unveiled in March 2024.

Simultaneously, in the last few weeks, Google and Microsoft launched their new generative AI models like advanced Gemini AI and GPT-4o which with the help of Nvidia’s Blackwell GPUs were able to showcase advanced AI features.

Moreover, Nvidia’s co-founder and president has announced that their company will build a new Blackwell chip every year. He further stated that the Blackwell platform is in full production and forms the foundation for trillion-parameter scale generative AI. He further expects Nvidia to ramp up the products in this quarter and scale it in the next one.

Nvidia's stranglehold on the AI space means other chipmakers are taking the fight on the local based AI servers, like providing AI-powered PCs as opposed to the cloud-based AI market.