Reuters reports that Nvidia’s valuation surged by over $2 trillion in 2024, reaching over $3 trillion, making it the second-most valuable public company. It owes its success to its GPUs, which were previously targeted at video games but ultimately transformed into critical hardware for developing AI models.

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According to the report, Nvidia invested $1 billion across 50 startup funding rounds in 2024 (versus $872 million in 2023), including Elon Musk’s xAI. It also acquired multiple AI players, including Run:ai, Nebulon, and OctoAI.

These companies were instrumental in the S&P 500 and Nasdaq index’s surge of 23%—29% in 2024, backed by investor and analyst enthusiasm despite Donald Trump’s tariff threat and U.S. interest rate concerns.

Daniel Ives of Wedbush told Reuters he expects tech stocks to post a 25% gain in 2025, citing favorable regulatory policies under Donald Trump, AI capital expenditures, and more.

Nvidia stock surged 203% in the last 12 months. Investors can gain exposure to the stock through VanEck Semiconductor ETF (NASDAQ:SMH) and Fidelity MSCI Information Technology Index ETF (NYSE:FTEC).

Price Action: NVDA stock is up 4.28% at $144.23 at the last check Friday.

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Photo courtesy of Nvidia