$1 Trillion Market Cap As AI Boom Fuels Chipmaker Rally
Nvidia achieved a market cap above $1 trillion for the first time on Tuesday.
The chipmaker's stock has soared 182% this year on demand for its AI tools.
Nvidia's latest leg up was driven by a series of new AI products and partnerships announced over the weekend.
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Nvidia on Tuesday stepped into an elite club of companies valued at $1 trillion or more, then ended the trading session just below that massive threshold.
Shares saw a new leg higher after the company announced new products centered around artificial intelligence over the weekend. Prospects that Nvidia will be a leader in the AI race have pushed the stock 182% higher so far in 2023.
Nvidia rose as much as 7.7% to $419.38 on Tuesday, giving it a market cap of $1.036 trillion and making it the first chipmaker to touch a $1 trillion market capitalization. Shares finished the day higher by 3% at $401.11, logging a market cap of $990 billion.
The stock's outstanding year-to-date performance has been a main contributor to the tech-heavy Nasdaq 100's surge of 31%.
Investors and analysts see Nvidia as best positioned to provide GPUs to run chatbots like OpenAI's ChatGPT and Google's Bard. Amazon, Apple, Alphabet, Microsoft and Saudia Arabia's oil company Saudi Aramco are the handful of other companies in the $1 trillion valuation stratosphere.
Nvidia's stock rise on Tuesday came after the company introduced new AI-related products, including its Grace Hopper superchips and DGX GH200 AI Supercomputer. The company is also working on partnerships, including building a platform with advertising heavyweight WPP for computer-generated ads.
Nvidia CEO Jensen Huang at the Computex conference in Taipei on Monday said anyone can be a programmer with new AI tools.
"The programming barrier is incredibly low," he said. "Everyone is a programmer now — you just have to say something to the computer."
Shares of Nvidia soared last week after the company's first-quarter earnings and second-quarter guidance trounced analyst expectations.
Source: Markets Insider
