A company that makes microchips for artificial intelligence (AI) has become the first $1 trillion chip maker.
Nvidia joins a staggering roster of tech giants including Amazon, Apple, Microsoft and Google parent Alphabet as investors expect the company to benefit from the AI revolution.
It produces chips critical to artificial intelligence technologies such as Chat GPT builds an artificially intelligent chatbot and on Monday unveiled a slew of new artificial intelligence products, including a supercomputer platform.
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A share of Nvidia rose as high as $408.13 (£328.85) on Tuesday afternoon following the announcement, pushing the company’s total market capitalization past the $1 trillion mark for the first time.
The company has been plagued by supply chain issues, but has overcome them and the stock price has been steadily rising. Throughout 2023, Nvidia’s stock price has risen by 180%.
Last week, investors and analysts cheered Nvidia’s sales forecast, which forecast $11bn (£8.86bn) in the three months to July. This was 50% higher than analysts’ expectations.
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Nvidia is now more valuable than other chipmakers such as Intel and tech giant Meta.
Company founder and current CEO Jensen Huang founded Nvidia in 1993 at the age of 30. He is the second CEO in U.S. history, after Amazon founder and former CEO Jeff Bezos, to still be in charge of a company that has reached a milestone value.
Nvidia tried to buy British chipmaker Arm for $40bn (£32.22bn) in 2022, but the deal was dropped after the takeover regulatory pressure in the UK and US.