NVIDIA's Market Cap Surpasses $4.3 Trillion, Driven by 170% Stock Surge and China Demand

NVIDIA, the leading AI chip manufacturer, has achieved a significant milestone as its market capitalization surpassed 4.3 trillion dollars. This surge in value is driven by the company's strong performance in the AI sector and its strategic moves to meet the growing demand for its products.

NVIDIA's stock price has seen a remarkable increase of over 170% in 2024, following a 240% surge in 2023. This growth has added approximately 700 billion dollars to its valuation this year alone. The company's success is attributed to its innovative AI technologies and the increasing demand for its high-performance chips.

In addition to its market capitalization milestone, NVIDIA has reportedly placed a substantial order with Taiwan Semiconductor Manufacturing Company (TSMC) for 300,000 units of its H20 chipset. This order is aimed at fulfilling the rising demand from the China market, which has been a significant driver of NVIDIA's growth. The strong demand from China has prompted NVIDIA to reconsider its reliance on existing inventory and secure additional production capacity.

Previously, NVIDIA had to cancel customer orders and withdraw production capacity from TSMC due to export restrictions imposed by the U.S. government in April. However, the recent lifting of these restrictions has allowed NVIDIA to resume sales of its H20 chips to China. The company had initially planned to redirect the production capacity allocated for H20 chips to other customers, but the new order from NVIDIA will now be prioritized.

The production of H20 chips, which are specifically designed for the China market, had been halted due to U.S. export restrictions on more advanced AI processors. The resumption of production will take approximately nine months, highlighting the strategic importance of this order for both NVIDIA and TSMC. This move underscores NVIDIA's commitment to meeting the growing demand for AI technologies and its ability to navigate complex regulatory environments.