AI Fueled NVIDIA’s Remarkable $2 Trillion Value and Record Revenue

Businessman shaking hands with a robot. Artificial intelligence, business.

World-class chipmaker NVIDIA became the first company in its industry to reach a market cap above $2 trillion. This remarkable high water mark capped off an incredible week for NVIDIA, which posted record revenue last week.

In its fourth-quarter financial report, NVIDIA recorded record quarterly revenue of $22.1 billion, up 22% from the third quarter and up an eye-watering 265% from the prior year.

The California company’s data center revenue in the fourth quarter was up 409% year-over-year, and full-year total revenue increased 126% to $60.9 billion.

The company’s generally accepted accounting principles (GAAP) earnings per diluted share rose to $4.93 in the fourth quarter, up 33% from the previous quarter and 765% from a year ago. Non-GAAP earnings per diluted share rose 486% year-over-year.

Nvidia logo and sign on headquarters. Blurred foreground with green trees. California.

What’s behind this skyrocketing financial performance?

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” says Jensen Huang, founder and CEO of NVIDIA.

Digging through the company’s press release, “AI” shows up a lot — more than 15 times.

NVIDIA’s incredible soaring success is excellent news for shareholders, and the company’s continued advancements in computing technology are loved by consumers across many sectors.

However, are such rapid valuation increases on the back of AI a good thing overall? NVIDIA is far from the only company that has benefited from demand for AI-related tech, and will not be the only corporation to experience this sort of share price inflation.

It is easy to wonder how this dazzling stock market performance impacts potential legal challenges to AI.

At this point, those worried about AI’s potentially destructive effects on society have only government oversight to hope for, as companies, especially publicly traded ones, will never curtail efforts to make more money. And as NVIDIA has shown, AI is a surefire way to make money, at least for now.

And the top five stock holdings among Democratic U.S. lawmakers and their spouses? Companies heavily involved in AI: Microsoft, Amazon, Alphabet, Apple, and NVIDIA. For Republicans, the portfolios are slightly different, with more of a tilt toward fossil fuel companies, although Intel, NVIDIA, and Amazon all make the top 10.

For people hoping that politicians may hold the key to protecting society from the potential hazards of AI, don’t hold your breath.

Image credits: Photos licensed via Depositphotos.