Nvidia president and CEO Jensen Huang holds a graphics card NVIDIA 4060Ti and a laptop at a keynote presentation at Computex, or the Taipei International Information Technology Show, on May 29, 2023.
Walid Berrazeg/SOPA Images/LightRocket via Getty Images
Nvidia achieved a market cap above $1 trillion for the first time on Tuesday.
The chipmaker’s stock has soared 187% 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.
Nvidia on Tuesday joined the elite club of companies valued at $1 trillion or more.
Shares saw a new leg higher after the company announced new products centered around artificial intelligence over the weekend. The prospects that the company will be a leader in the AI race have pushed the stock 187% 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. The stock’s outstanding year-to-date performance has been a main contributor to the tech-heavy Nasdaq 100’s 32% gain.
Investors and analysts see Nvidia as best positioned to provide GPUs to run chatbots such as OpenAI’s ChatGPT and Google’s Bard. Nvidia was on the verge of becoming the first chipmaker valued at $1 trillion. Amazon, Apple, Alphabet, Microsoft and Saudia Arabia’s oil company Saudi Aramco are the few other companies in that 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,” Huang 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.