Nvidia Tech Company hit a $1 trillion market cap at the open Tuesday, joining a small club of mostly technology companies. Nvidia’s shares have to hold above $404.86 to maintain that distinction throughout the day.
The stock rose nearly around 6% in morning trading.
Shares of the chipmaker rose last week after quarterly results came in steadily higher, well above consensus. Nvidia’s earnings buoyed other chipmakers, with the notable exception of Intel’s , and were driven in part by better-than-expected estimates. Significantly, Nvidia forecasts revenue of $11 billion for the second quarter of fiscal 2024 alone. Projected revenue was 50 percent above the consensus estimate of $7.15 billion. It’s been a record-breaking year for chipmakers, parts of the tech industry, and the Nasdaq, fueled in part by the madness of AI and the possibility of a slowdown in Federal Reserve rate hikes.
In addition to Nvidia, Alphabet, Meta and Microsoft, also attracted significant commercial interest last week. GPUs from Nvidia (Graphics Processing Units) are essential for generative AI platforms like OpenAI’s ChatGPT and Google’s Bard. The company has always been a leader in the so-called discrete or discrete GPU space, but until recently, many consumers believed that GPUs were primarily used for intense gaming.
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The emergence of cryptocurrency mining and artificial intelligence has disproved this notion as GPU makers and suppliers like Nvidia, Advanced Micro Devices , and Taiwan Semiconductor Manufacturing have seen their share prices soar in recent months. In contrast, Intel, struggling with inventory and development challenges, has historically focused on the CPU or processor integrated circuit market. The company hasn’t expressed a relatively vague interest from investors.
TRILLION-DOLLAR MARKET CAP CLUB
|SYMBOL||NAME||MARKET VALUE||YTD %||2023 EST. REVENUE (BILLIONS)|
|NVDA||NVIDIA Corporation||$1.00 Trillion||177.23||30,426.5|
|MSFT||Microsoft Corporation||$2.475 Trillion||38.9||211,434.1|
|GOOGL||Alphabet Inc. Class A||$1.587 Trillion||40.83||299,810.2|
|AAPL||Apple Inc.||$2.759 Trillion||36.4||384,748.7|
|AMZN||Amazon.com, Inc.||$1.232 Trillion||46.05||559,661.3|
Nvidia Company on Tuesday morning market cap places it alongside a handful of other companies, like Apple, Alphabet, Amazon, and Microsoft, that have a $1 trillion or more valuation. Nvidia shares were already up 166.5% year to date before Tuesday’s open.