Nvidia’s market capitalization surged past $1 trillion for the first time in the chipmaker’s history Tuesday, as the Silicon Valley behemoth rides Wall Street’s artificial intelligence obsession to new heights.
Nvidia CEO Jensen Huang speaks at a press conference Tuesday.
Shares of Nvidia rose 4% in early trading, representing a one-day gain of $40 billion and pushing the chipmaker's market value to a hair over $1 trillion.
Nvidia is now the sixth public company in the world valued at over $1 trillion, joining Apple, Saudi Aramco, Microsoft, Alphabet and Amazon; the only other companies to ever cross the threshold are Tesla and Meta, which are each valued at less than $700 billion today, and Chinese oil giant PetroChina.
Joining the $1 trillion club follows a dramatic rise thus far in 2023, with Nvidia's stock up more than 175% as Wall Street analysts say the Palo Alto-based company could be the firm best-positioned to profit off of the AI boom.
Nvidia’s stock surged more than 10% following each of its earnings reports this year as investors’ imaginations for the company ran wild. The firm, which makes the chips powering generative AI computing in addition to a variety of software and hardware products, said last week it anticipates profits to be twice as high as expected during the current quarter thanks to AI-related sales. The stock’s dramatic rally year-to-date headlines a strong return for other mega-cap tech stocks, with each of Apple, Amazon, Microsoft, Meta and Tesla up 25% or more in 2023.
Generative AI marks a “a paradigm shift now translating into material early revenue for the leader in AI compute,” Cowen analyst Matthew Ramsay wrote to clients Thursday, referring to Nvidia.
Nvidia is now worth just $250 billion less than Amazon, a dramatic swing from last fall, when Nvidia was worth roughly $850 billion less than its fellow tech titan. In a note to clients last week, Rosenblatt analyst Hans Mosesmann set a price target for Nvidia’s stock which implied a nearly $1.5 trillion market cap for Nvidia. That would top Amazon and fall just shy of Alphabet.
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