2024 saw Nvidia transform from a gaming graphics leader to the backbone of the AI revolution, becoming a dominant force in the semiconductor industry.
- Market Performance: Nvidia briefly became the world’s most valuable company in June, surpassing Microsoft with a $3.3 trillion market cap. Stock surged 182% YTD (compared to the S&P 500’s 25% gain) but experienced some volatility later in the year.
- Technological Advancements: Key releases included the Blackwell chip architecture (March) and NVLM 1.0 open-source multimodal large language models (October). Demand for H100 GPUs was exceptionally high, with prices ranging from $25,000-$30,000, and reports of 2025 Blackwell chip production being sold out.
- Expanding Influence: Nvidia became a top employer in Silicon Valley, offering median compensation exceeding $228,000, and was added to the Dow Jones Industrial Average in November.
- Challenges: The company faced an antitrust investigation alongside Microsoft and OpenAI and navigated supply chain and pricing pressures.
While analysts are optimistic about Nvidia’s 2025 prospects, including entry into ARM-based CPUs and focus on robotics/self-driving tech, potential regulatory scrutiny and increased competition in the AI chip market pose challenges to maintaining its current dominance.
