In 18 months, its market value tripled. It's now the largest increase in any company's market value in history!
- The valuation was absurd:
📈 June 2023: $1 trillion 📈 July 2024: $2.5 trillion 📈 July 2025: $4 trillion
It became the most valuable company on the American stock market.
- Now look at this:
💰 Nvidia: US$4 trillion
- But what does it actually do?
Nvidia manufactures GPUs—graphics processors.
Once used for gaming, they are now the heart of artificial intelligence.
Without Nvidia chips, there would be no ChatGPT, Gemini, Grok, or Sora.
- What changed was the boom in generative AI.
After ChatGPT, all the big tech companies started developing their own AIs.
And they all needed the same thing:
🔌 Computing power 🎯 Nvidia GPUs
- The company has become a critical supplier to:
🔹 Microsoft 🔹 Google 🔹 Meta 🔹 Amazon 🔹 OpenAI 🔹 ByteDance 🔹 Tesla 🔹 Spotify …and many others.
Today, it is the infrastructure behind the next digital era.
- Fundamentals reflect the current situation:
🟢 Net income: US$18.8 billion in the last quarter 🟢 Revenue: US$44.1 billion (+69% in 12 months) 🟢 Weight in the S&P 500: largest in the index
Even with US restrictions on China, which could cost US$8 billion in sales. The market doesn't care. Because the thesis is bigger: AI will dominate the world.
And Nvidia has become the shovel and pickaxe of this new gold rush.
- But there are serious risks along the way:
⚠️ Taiwan: Nvidia's chips are manufactured by TSMC, which is based there. A conflict with China would bring everything to a standstill.
⚠️ Technological disruption: What if another type of processor is more efficient than the GPU?
⚠️ Customer concentration: A few big tech companies account for most of the revenue.
⚠️ Stretched valuation: Any misstep could result in a major fall.
This is a canary in the coal mine. A lot of them are dying lately.