Nvidia’s stock rose by 4.2% on Tuesday. The company’s valuation of $1 trillion has pushed AI into the limelight, leading to a surge in AI-related stocks and tech giants investing in generative AI.
In early trading on Tuesday, shares of gaming and AI chip company, Nvidia, rose by 4.2%, resulting in a valuation of $1 trillion. The company has achieved a significant milestone by joining the exclusive group of companies with a massive market capitalization.
Taiwan Semiconductor Manufacturing Co Ltd is presently the second-largest chipmaker in the world, with an estimated value of $535 billion. In 2021, Meta Platforms Inc joined the exclusive club of U.S. companies with a market capitalization of one trillion dollars. Other notable members of this club include Apple Inc, Alphabet Inc, Microsoft Corp, and Amazon.com Inc.
Nvidia’s forecast has left financial analysts on Wall Street in awe, with many describing it as “cosmological” and “unfathomable.” As a response, the price targets were significantly increased by them, with the maximum valuation reaching approximately $1.6 trillion, which is comparable to that of Google’s parent company, Alphabet.
Nvidia’s revenue forecast has taken the tech industry by storm, exceeding analysts’ predictions by a staggering 50%. This impressive feat has thrust AI into the limelight, causing a surge in AI-related stocks and providing a boost to other chipmakers. On Friday, the Philadelphia SE Semiconductor index achieved its highest closing point in more than a year, thanks to the prevailing positive market sentiment.
The remarkable success of ChatGPT, which is owned by OpenAI, has spurred tech behemoths such as Alphabet and Microsoft to invest in generative AI. This technology facilitates natural-sounding dialogue and the production of diverse content, spanning from humorous quips to poetic compositions.
