And then there were five.
Nvidia is the latest company with a market capitalization to cross the $1 trillion mark, as its stock jumped more than 4% in early trading on Tuesday, before losing a bit of ground.
This puts the company in the same league as Apple, Microsoft, Alphabet, and Amazon.
The stock has soared since its May 24 earnings report that blew past expectations and positioned the graphics-chip company as a leader in artificial intelligence.
Shares briefly topped $404.86 in early trading, bringing them above the trillion-dollar mark. After hovering above and slightly below that level, the stock jumped back to more than $417 a share as shares resumed trading after the Memorial Day holiday.
Nvidia is the first US chip maker to be valued at more than $1 trillion.
Nvidia said last week that it expects to reach $11 billion in sales for the second quarter of fiscal 2024. The company’s graphics processing chips, which have been traditionally used for gaming and more recently for cryptocurrency mining, are crucial to building generative AI platforms. It takes thousands of chips to run a single AI system like ChatGPT.
Although it’s still well below Apple’s $2.8 trillion market cap, Nvidia has plenty of room for growth, according to analysts. Bank of America said last week that the company had established itself as a “leader in artificial intelligence” and said its market capitalization would rise to “$1 trillion and more.” The financial institution currently has a $450 price target on Nvidia.
Christopher Rowland and Matt Myers of Susquehanna Financial Group were equally optimistic about the company, writing in a note: “Looks like a new gold rush is upon us, and Nvidia is selling all the picks and scoops.”
Year-to-date, Nvidia shares are up more than 190%.
