Markets, Technology
Nvidia Becomes First Chip Stock to Join Trillion-Dollar Club
May
Nvidia climbed above a market valuation of $1 trillion as the chip maker’s stock rose on Tuesday.
In morning trading, Nvidia experienced a 6.2% increase, reaching $413.75. To maintain the trillion-dollar milestone, the stock must remain above $404.86. The surge in enthusiasm for the utilization of artificial intelligence, which drives the demand for Nvidia’s chips, has caused the stock to more than double its value this year.
After Nvidia projected last week that its revenue for the present quarter would be approximately $11 billion, surpassing analysts’ predictions of $7.2 billion, the stock experienced a significant surge. In just one day, the company’s market capitalization increased by approximately $184 billion, and since then, it has continued to rise.
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The recent announcements made by Nvidia at the COMPUTEX conference in Taipei this week have further fueled excitement. These announcements, which include the introduction of a new supercomputer, are anticipated to empower the upcoming wave of generative AI applications.
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Nvidia has become part of a select group of U.S. stocks that have surpassed the $1 trillion threshold. The existing members of this exclusive club consist of Apple, Amazon, Google’s parent company Alphabet, and Microsoft. However, all of these companies experienced declines after initially reaching this milestone. Previous entities that managed to exceed the mark but subsequently fell below it include Tesla and Meta, the parent company of Facebook.
On Tuesday, additional stocks focused on artificial intelligence experienced gains, with C3.ai (AI) surging by 21% and Palantir Technologies (PLTR) ascending by 8%.