Nvidia, a manufacturer of computer chips, temporarily entered the exclusive group of trillion-dollar companies due to an unparalleled surge in demand for artificial intelligence (AI) technology.
Nvidia’s Market Cap Skyrockets
According to Google Finance, on May 30, during the morning trading session in the United States, Nvidia’s stock experienced a remarkable surge, reaching a daily peak of more than $418. As a result, the company’s market capitalization surpassed the $1 trillion mark.
Despite closing the day slightly above $401, Nvidia currently holds a market capitalization of $992 billion, positioning the company among a select few. This accomplishment aligns Nvidia with renowned technology powerhouses such as Apple, Microsoft, Amazon, and Alphabet (the parent company of Google).
AI Tech Boom
Nvidia’s remarkable year-to-date increase of more than 180% can be credited to the surging demand for graphics processing units (GPUs) that fuel generative AI tools. An astounding 80% of these GPUs are presently produced by Nvidia, as reported by Reuters.
Nvidia is not alone in its endeavor to develop AI-ready chips, as other prominent players in the industry are also making investments in this field. One such example is Microsoft, which is said to be working on its own AI chip to drive AI applications for OpenAI, led by Sam Altman, as well as for internal initiatives. Additionally, Elon Musk, the former CEO of Twitter, has recently procured a substantial number of general processing units for an upcoming AI project at Twitter, highlighting the increasing interest in advancements related to AI.
