On Tuesday, a new member joined the exclusive group of US firms valued at more than $1 trillion, at least for a short time. Nvidia, a chip manufacturer, momentarily joined the group when its share price rose by more than 5% before falling.
Last week, after the company predicted “surging demand” as a result of developments in artificial intelligence, shares had already increased by more than 25%. The other publicly traded US companies valued more than $1 trillion (£800 billion) are Apple, Saudi Aramco, Amazon, Alphabet, PetroChina, Tesla, Meta, and Microsoft. According to sources, Nvidia is the 9th company worldwide till now to hit $1 trillion market value.
Nvidia was first recognised for producing the kind of computer chips that handle visuals, particularly for video games, when it was founded in 1993. Long before the AI revolution, the company’s co-founder Jensen Huang gambled by investing in new Nvidia chip capability. The long game seems to have paid off.
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According to one assessment, it has a monopoly on 95% of the machine learning business, and its hardware currently powers the majority of AI applications. The chatbot ChatGPT, whose release last year ignited the AI craze, was trained using 10,000 Nvidia graphics processing units (GPUs) huddled up on a Microsoft supercomputer.
Nvidia’s stock price has more than doubled over the last year as investors think the company will profit when AI ushers in the next wave of technological advancements. The California-based company’s shares concluded Tuesday’s New York trading at roughly $401, or up about 3%, leaving it with a market value of more than $990 billion.
