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Key Takeaways
- Nvidia shares rose more than 4% at the open Friday, propelling its market capitalization above $2 trillion. The stock pared its gains later in the session to close with a $1.94 trillion market cap.
- Nvidia is just the fourth U.S. company to touch $2 trillion, after Apple, Microsoft, and Google Parent Alphabet.
- The milestone comes as Nvidia’s stock price has more than tripled in the last year amid booming demand for artificial intelligence.
Nvidia ( NVDA ) shares rose over 4% at the open Friday, propelling its market capitalization above $2 trillion in the wake of its blowout earnings Wednesday.
Nvidia’s path to $2 trillion has been 25 years in the making, but the first trillion took longer to reach than the second. The company went public in January 1999 and it took it more than 24 years to hit the $1 trillion milestone , which it reached last May. The climb from $1 trillion to $2 trillion took just 270 days.
Nvidia’s stock price has more than tripled in the last year amid booming demand for artificial intelligence and the advanced semiconductors in which Nvidia specializes.
Nvidia is just the fourth U.S. company to touch $2 trillion. Apple ( AAPL ), which closed above $2 trillion on Aug. 20, 2020, was the first to get there. It was followed by Microsoft ( MSFT ), which crossed the threshold on June 22, 2021. Google Parent Alphabet ( GOOGL ) briefly reached it on Nov. 8, 2021, but it has never closed above the $2 trillion mark.
The only other company in the world to have achieved such a high valuation is Saudi Aramco , the state-owned national oil company of Saudi Arabia.
Nvidia pared its early gains and finished the session up 0.4%, putting its market cap at $1.94 trillion.
Update—Feb. 23, 2024: This story was updated to reflect the drop in Nvidia’s stock price between the open and close.