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NVIDIA Hits $3 Trillion Market Cap

Date: June 5, 2024
Company: NVIDIA
Category: Policy, Business & Society

Narrative

Third company to reach $3T market cap. Driven by AI infrastructure boom. Stock up 150% year-to-date. Data center revenue dominates.

CNBC

Reality

Market cap peaked briefly at $3.01T then dropped below. Volatility high. Q1 2024 data center revenue $22.6B, up 427% YoY. Gross margins 78%.

Implication

Validated AI infrastructure spending trajectory. Revenue concentration risk in hyperscalers evident. Competition from AMD and custom chips intensifying. Regulatory scrutiny increasing.

Tags

  • nvidia
  • market-dynamics