NVIDIA designs and manufactures graphics processing units (GPUs) and computing platforms used for gaming, data centers, and artificial intelligence. These products work by using parallel processing to handle complex mathematical calculations much faster than standard computer processors, supported by a software ecosystem that allows developers to build and run AI models. Unlike competitors that may focus solely on hardware, NVIDIA integrates its chips with specialized software and cloud services to create a complete environment for high-performance tasks. The company’s goal is to provide the underlying technology necessary to power advanced computing, from realistic video game graphics to autonomous vehicles and large-scale data analysis.
Company Size
10,001+
Company Stage
IPO
Headquarters
Santa Clara, California
Founded
1993
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Warren Buffett's 1999 warning about investing in transformative technology has resurfaced as Nvidia's market value reaches roughly $5.5 trillion. Since ChatGPT's launch in late 2022, Nvidia's annual revenue has surged from approximately $27 billion to more than $215 billion, with its latest quarter generating $96.2 billion. Buffett's concern wasn't whether technology would reshape society, but whether investors could identify which companies would maintain a "truly durable competitive advantage". Nvidia's CUDA software ecosystem, built over nearly two decades, provides strong evidence of such an advantage. However, the question remains whether Nvidia can preserve its dominant position as competition grows and customers develop alternatives. Morgan Stanley recently maintained its $300 price target for Nvidia shares.
Nvidia CEO Jensen Huang has firmly rejected warnings about AI posing an existential threat to humanity, calling such concerns "complete nonsense" and criticising industry leaders like Sam Altman and Dario Amodei for promoting "doomsday narratives". In a recent CBS News interview, Huang stated there was "0% chance" 2030 would mark the end of the world. He argued governments should regulate "actual and pragmatic harm" rather than hypothetical risks, comparing AI development to the evolution of cars. Despite dismissing existential fears, Huang maintains AI safety remains "paramount". On Monday, Nvidia launched its Open Agent Safety Platform, designed to prevent AI agents from exceeding their authority through isolation and continuous monitoring systems called OpenShell and Sentry.
Akamai Technologies has signed a nearly $12 billion deal with AI lab Anthropic for cloud capacity and services, which could indirectly benefit Nvidia. The seven-year agreement focuses on CPUs rather than the GPUs that typically dominate AI infrastructure deals. GF Securities analyst Henry Huang suggests the deal likely involves Nvidia's Vera CPUs, which Akamai previously indicated it would deploy for agentic workloads. Nvidia named both Akamai and Anthropic as early adopters of Vera when the processor launched in May. Whilst Akamai expects roughly $5.5 billion in capital expenditures tied to the commitment, the strategic implications may prove more significant than immediate revenue. Nvidia CFO Colette Kress said trailing-twelve-month revenue from Grace CPUs already exceeded $5 billion, with CPU revenue expected to more than double year-over-year in fiscal 2028.
Nvidia's stock hit a record high on Friday, reaching $237.88 and pushing the chipmaker's market capitalisation to roughly $5.7 trillion, the largest of any company globally. This marks the first record since May. The stock has surged over 40% from its 30 March low of $165.17. Nvidia's valuation has grown dramatically from $1.18 trillion in August 2023 to becoming the first company to reach $5 trillion in October 2025. The rally follows several catalysts. Nvidia's board authorised a $150 billion share buyback, bringing total repurchase authority to $235 billion through fiscal 2028. A weak US jobs report also boosted stocks by reducing expectations of Federal Reserve interest rate rises. Nvidia reported $96.2 billion in revenue for the quarter ended 26 July, up 106% year-on-year, with data centres contributing $89 billion.
Nvidia shares have returned 1,073% since October 2021, significantly outperforming the S&P 500's 77.9% gain over the same period. The stock has risen 30.5% in the past six months, driven by strong quarterly results. The chip designer's revenue growth has been exceptional, with a 69.1% annualised increase over five years. This growth outpaced the average semiconductor company, demonstrating strong customer demand for its products used in gaming, data centres, and automotive applications. Nvidia's earnings per share expanded at an even faster rate of 82.6% annually over the same period, indicating improving profitability. The company also maintained an impressive 42.5% average free cash flow margin over the past two years, amongst the highest in the semiconductor sector. The stock currently trades at $231.49, representing 18.9 times forward price-to-earnings.