NVIDIA’s Market Cap Soars Towards $1 Trillion

The stock gave up some of its gains by late afternoon trade, holding on to a fresh 52-week high but slipping back slightly below $1 trillion value.

Nvidia joined an exclusive group of largely tech businesses when its market worth reached $1 trillion at the opening of trading on Tuesday. For Nvidia’s shares to keep that distinction throughout the day, they must hold above $404.86.

KEY POINTS:

  • Nvidia hit a $1 trillion market cap at the start of trading Tuesday
  • The current price of Nvidia stock is $409. For the corporation to start at the trillion-dollar value, it needs to hold above $404.86.

The chipmaker’s shares rocketed last week after it posted quarterly earnings with top- and bottom-line numbers that significantly beat consensus estimates. Other chipmakers were encouraged by Nvidia’s increase, with the noteworthy exception of Intel, and it was also aided by predictions that were more positive than anticipated.

Notably, Nvidia projected sales of $11 billion for the whole second quarter of fiscal 2024. The expected sales were 50% more than the average prediction of $7.15 billion.

The artificial intelligence frenzy and the likelihood for a halt in Federal Reserve rate rises have helped chipmakers, some segments of the tech industry, and the Nasdaq enjoy a spectacular year. Along with Nvidia, Alphabet, Meta, and Microsoft all benefited from the trade last week.

Platforms for generative AI, such as Google’s Bard and OpenAI’s ChatGPT, depend heavily on Nvidia’s graphics processing units, or GPUs. Although the company has long been a leader in the market for so-called discrete or stand-alone GPUs, many consumers still believed that GPUs were primarily used for demanding video games until recently.

That notion has been disproved by the emergence of AI and crypto mining, and during the past several months, share prices of GPU suppliers and manufacturers, such as Nvidia, Advanced Micro Devices, and Taiwan Semiconductor Manufacturing, have risen dramatically.

Nvidia’s market value on Tuesday morning placed it in a small group of businesses with a $1 trillion or higher valuation, such as Apple, Alphabet, Amazon, and Microsoft. Before Tuesday’s opening, Nvidia shares had already increased 166.5% year to date.

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