On February 23, 2023, the tech world was set ablaze with the news that Nvidia had achieved a milestone previously thought unreachableAs of 9:30 AM Eastern Time, Nvidia became the first chip company in the world to surpass a staggering valuation of two trillion dollars, marking a momentous occasion in the semiconductor industryThe meteoric rise of Nvidia is nothing short of extraordinary, especially as it is a fabless company that focuses solely on chip design.

Just weeks prior to this historic moment, Nvidia's market capitalization was on a swift upward trajectoryOn February 14, it reached $1.78 trillion, surpassing AmazonThe next day, it climbed even higher to $1.83 trillion, overtaking Alphabet, Google's parent company, to become the third-largest company in the U.Sstock market, trailing only behind Microsoft and Apple

Then, on February 22, Nvidia's market cap skyrocketed in a single day, witnessing a staggering increase of $277 billion, which set a record as the largest single-day gain in Wall Street's history.

Nvidia's exponential growth over a brief period—from a market cap of $80 billion to $2 trillion within just over five years—is astonishing, to say the leastThis surge represents an increase of 2400%. Founded and led by Jensen Huang, a company started by a three-man team, Nvidia has now ascended to the pinnacle of the global semiconductor industry amidst the growing demand for generative AI and large models.

Reflecting back on 2018, the global economy appeared to be slowing, and semiconductor demand began to dwindleAt this time, Nvidia's stock price took a substantial hit, almost halving by year-end, plummeting to just $80 billion in market value

• Samsung to Integrate SK Hynix Technologies
• The Impact of Interest Rate Decisions on the Bond Market
• Economic Drivers of Global Stock Markets
• Decoding Economic Indicators
• Europe's Economic Influence on FX Markets

Anyone who had invested $13,365 to purchase 100 shares of Nvidia back then, at a price of $133.65 per share, would have experienced incredible gainsFollowing a 4-for-1 stock split announced in June 2021, the stock price fell to around $33.41, but has since surged to a peak of $823.94, delivering returns of 2366% to early investors.

In 2023, Nvidia's stock continued its impressive run, soaring from $148 to $495—a remarkable increase of 234%. Moving into 2024, year-to-date gains have been recorded at an astonishing 60%.

Jensen Huang, often dubbed 'the leader' or 'the nuclear wizard,' embodies the spirit and determination that have propelled Nvidia forwardHaving recently been elected as a member of the National Academy of Engineering and being known for his penchant for black leather jackets, Huang currently owns 3.6% of Nvidia

His net worth climbed from $14 billion at the beginning of 2023 to an impressive $69.2 billion, consequently placing him as the 21st richest individual globally, surpassing China's wealthiest person, Zhong Shanshan.

The primary catalyst for Nvidia breaching the $2 trillion mark was its formidable financial report released on February 22. For the fiscal year ending January 31, 2024, Nvidia reported an impressive annual revenue of $60.9 billion, nearly 2.3 times its total revenue of $27 billion in 2023. The net income stood at $29.8 billion, reflecting a jaw-dropping year-over-year growth of 581%. An astonishing 78% of this revenue was generated from robust demand in its data center segment, which saw a year-over-year growth of 217%, reaching a record-breaking $47.5 billion.

Even though Nvidia faced setbacks due to U.S

export restrictions, its sales in China only accounted for 14% of total data center revenue in 2024, down from 19% in 2023. The revenue share in Q4 plummeted to the single digits, but this did not hinder the continuous demand for Nvidia's data center chip products.

In addition to its strong business performance, Nvidia has also been diversifying its revenue streams through investmentsRecent filings revealed that Nvidia has stakes worth $147.3 million in Arm, $3.67 million in SoundHound AI, and $76 million in Recursion PharmaceuticalsBetween January and October 2023, Nvidia's venture capital arm executed 33 investments, with 11 occurring in the latest Q3.

Huang expressed confidence in investing in these companies due to their incredible innovation and intellectThese startups utilize Nvidia's AI technology and engineering capabilities to optimize their own AI models, although they do not receive priority access to GPU resources and must negotiate with cloud service providers for those.

Nvidia's influence extends into the realms of cloud computing, with some GPU cloud companies rising to prominence

For instance, CoreWeave reached a valuation of $7 billion in December, while Lambda announced a $320 million funding round, bringing it to a valuation of $1.5 billion after funding.

Notably, many prominent U.Sinvestment entities significantly increased their Nvidia stakes in the last quarter of the past yearRay Dalio's Bridgewater Associates raised its holdings by 450% to $133 million, while Kenneth Fisher's Fisher Investments boosted its stake by $800 million to $4.4 billionBoston-based Arrowstreet Capital also acquired nearly 4 million shares, bringing its total holdings to $2.1 billionIf their positions remain unchanged, they could earn a minimum of $1 billion in profits through their Nvidia investments so far this year.

Now, with Nvidia's market cap exceeding $2 trillion, Huang has yet again solidified his legacy in the annals of semiconductor history.

In a recent interview, Huang revealed that a new generation of Blackwell GPUs would launch soon, boasting record-breaking performance that he deemed 'unbelievable.'

The genesis of Huang's journey with Nvidia began remarkably—starting with menial jobs

In early 1993, on the eve of Huang's 30th birthday, he co-founded Nvidia with two friends, putting down $200 to secure 20% of the company in a deal that retrospectively appears extraordinarily advantageous.

Reflecting on his early days, Huang humorously acknowledged that during Nvidia's formative years, the team's primary concern was often deciding where to lunchA suggestion from a lawyer startled him into action when asked about his available funds—prompting the swift establishment of the company.

Nvidia’s name originates from Latin, with 'Invidia' meaning envy or jealousyAdopting the green eye logo as a symbol of creating coveted products that inspire envy, Huang's aspiration during a 2008 visit to his homeland was for Nvidia to be recognized as one of the world's most influential high-tech companies, alongside giants like Microsoft and Intel.

Today, Nvidia's ambition is realized, its revenues and stock performance outshining rival chipmakers

As Huang mingles with Silicon Valley stalwarts and is sought after by AI giants, Nvidia dominates with a stronghold of over 70% of the AI chip market.

On the topic of AI chat tools, Huang shared his enthusiasm for using Perplexity and ChatGPT, claiming he nearly uses these tools daily, pointing towards a future deeply integrated with AI technology.

Regarding the competitive landscape, Huang identified numerous opponents such as AMD, Intel, Alphabet, Amazon, Baidu, and many more in Nvidia's recent Form 10-K filingWhen directly questioned about his biggest competitor, Huang remarked that each competitor presents a significant challenge in the ever-evolving landscape of chip development.

Rather than fearing his competitors, he emphasized the importance of ensuring that his work is exhaustive, relying on the belief that his success hinge on continuous collaboration and innovation

Huang holds that the competition will always exist, but it is vital to foster a culture of innovation within his company.

Huang enthusiastically embraces an unconventional management style, gravitating towards flat organizational structures as they expedite information flow and decision-makingNvidia avoids traditional hierarchy, empowering employees to exercise their creativity and encourage initiative.

The journey has not been without challengesNvidia experienced turbulence in its early years, initially failing to garner substantial traction in the marketBy 1999, the company went public with a market valuation of just $230 millionThereafter, it launched the GeForce 256, the world’s first fully functional GPU, securing its foothold in the gaming graphics space.

Upon achieving considerable strides and surpassing a market cap of $10 billion by 2006, Huang’s decision to invest heavily in CUDA software development at the time was considered bold and riddled with risks

Nevertheless, this endeavor ultimately transformed GPUs into a ubiquitous tool in various sectors.

Nvidia's trajectory has consistently aligned with market demands, seamlessly adapting each time to newly emerging technologies and sectorsWith shifts in the cryptocurrency and data center sectors, Nvidia has enjoyed continuous growth, securing record revenue milestones as it evolving into a diversified powerhouse winning back the market after struggles during the downturn.

Today, as Huang surveys the landscape, he is filled with optimism regarding the growth potential of generative AI and believes we are on the cusp of an exciting transition akin to groundbreaking innovations throughout computing historyMoving forward, Huang predicts rapid advancements in the integration of AI technologies across varying applications, fostering continuous growth for his company.

In conclusion, as Nvidia's stock price adjusts from its record highs, the company stands at a unique intersection of immense opportunity and inevitable uncertainty