Nvidia is now worth $1 trillion. This rise in valuation has been fueled by the race among tech companies to include generative artificial-intelligence tools into their products. Recent Google I/O, MicrosoftBuild presentations were dominated by AI tools. Nvidia chips are a major supplier to companies that want to create AI-based products.
The most recent quarterly earnings report by Nvidia reported over $2 billion profit in just three months. The latest effort comes after Nvidia’s business grew during the early pandemic when there was a GPU shortage and they were in high demand for PC gaming as well as cryptocurrency mining, before these markets began to decline throughout 2022.
Jensen Huang , the CEO of Nvidia, said last fall that it had manufactured too many gaming graphics cards. It was then forced to sell these GPUs for less. By the time Nvidia released its next report, in February with ChatGPT dominating the news, it was looking more promising. Huang hailed the potential growth of Nvidia data centers, and their most recent report revealed a record revenue for data centers.
Nvidia’s Computex 2023 keynote over the weekend was packed with AI announcements. This included a demonstration of games that use its Avatar Cloud Engine for Games, which supports natural language for both input and response, and a DGX GH200 Supercomputer, built around Nvidia’s latest Grace Hopper Superchip, capable of an exaflop in AI performance.
Nvidia stock opened at $400 per share. This marks the first time that the company’s valuation has exceeded $1 trillion.
As trading opened at more than $400 per share today, its valuation passed the trillion-dollar mark. This puts it in a rarefied air that was previously only occupied by a select few large companies like Apple or Microsoft who had reached the important mark in August 2018 and in August 2019. Meta, Amazon and Google make up the rest of the tech stocks.
Reuters stated that Nvidia shares jumped by around 25 percent in the past week. , according to , Bloomberg, premarket trading on Tuesday morning saw the stock reach up to $404.91, a gain of approximately 4 percent.