The explosion in demand for its artificial intelligence chips has given Nvidia (NVDA) a place of choice in one of the most exclusive clubs on Wall Street: the chipmaker has reached a market capitalization of 1 trillion dollars.
Nvidia just became a trillion dollar company, its growing valuation being fueled by tech companies large and small racing to add generative artificial intelligence tools to their products. The club of companies with a trillion dollar market capitalization is so small that even Meta isn’t a part of it today. Only Apple, Alphabet, Amazon and Microsoft have a valuation above $1 trillion.
Nvidia unveiled a slew of new AI-focused products, including a new ultra-powerful supercomputer and a platform that will put generative AI to work in video game development. It was enough to convince investors to make the action soar.
Nvidia hits $1 trillion in market capitalization
AI has been a profitable sector for investors as the market continues to hype around this technology. Nvidia continued this excitement by announcing even more AI-focused products, including the new Nvidia DGX GH200 supercomputer and the new ACE generative AI platform.
Nvidia therefore manufactures chips that power generative AI, a type of artificial intelligence capable of creating new content, such as text and images, in response to user requests. This is the type of AI that underpins ChatGPT, Bard from Google, or even Dall-E.
Given the ever-increasing demand for powerful GPUs that will be able to support such technologies, Nvidia has positioned itself as a key player in this area.
In the most recent quarter, the company’s profit rose 26% to $2 billion, and sales rose 19% to $7.2 billion, well beating Wall analysts’ forecasts. Street. Nvidia’s outlook for the current quarter was also significantly higher, by around 50%, than analysts’ forecasts.