The artificial intelligence frenzy and demand for its AI-centric chips catapulted Nvidia Corp
Reuters reports that Nvidia's valuation surged by over $2 trillion in 2024, reaching over $3 trillion, making it the second-most valuable public company. It owes its success to its GPUs, which were previously targeted at video games but ultimately transformed into critical hardware for developing AI models.
According to the report, Nvidia invested $1 billion across 50 startup funding rounds in 2024 (versus $872 million in 2023), including Elon Musk's xAI. It also acquired multiple AI players, including Run:ai, Nebulon, and OctoAI.
Nvidia eyes robotics as a growth catalyst amid rising AI competition. The chip designer plans to introduce Jetson Thor computers for humanoid robots in 2025, coinciding with Tesla Inc
Other trillion-dollar tech companies included Microsoft Corp
Broadcom Inc
These companies were instrumental in the S&P 500 and Nasdaq index's surge of 23%-29% in 2024, backed by investor and analyst enthusiasm despite Donald Trump's tariff threat and U.S. interest rate concerns.
Daniel Ives of Wedbush told Reuters he expects tech stocks to post a 25% gain in 2025, citing favorable regulatory policies under Donald Trump, AI capital expenditures, and more.
Nvidia stock surged 203% in the last 12 months. Investors can gain exposure to the stock through VanEck Semiconductor ETF
Price Action: NVDA stock is up 4.28% at $144.23 at the last check Friday.
