Nvidia Charges Toward $1 Trillion Market Value in Massive AI Bet
Nvidia Corp. is poised to become the world’s first chipmaker with a $1 trillion market capitalization, joining an exclusive club of American companies with a valuation that high.
The stock jumped as much as 4% in premarket trading to $404.91 a share on Tuesday. If the gains hold, the Silicon Valley firm will hit the $1 trillion mark and join a handful of companies including Alphabet Inc., Amazon.com Inc., Apple Inc., and Microsoft Corp. to be valued that high. Fewer than 10 companies globally have ever achieved this level.
Over the weekend, Nvidia Chief Executive Officer Jensen Huang announced several artificial intelligence-related products, touching on everything from robotics to gaming to advertising and networking. He also unveiled an AI supercomputer platform that will help tech companies create their own versions of ChatGPT. “It’s too much,” Huang said during his presentation in Taiwan. “I know it’s too much.”
Nvidia is the biggest maker of the kinds of specialized chips that power a new generation of AI products, alongside rivals such as Advanced Micro Devices Inc. and Intel Corp. The viral success of OpenAI’s ChatGPT — released just a few months ago — prompted investors to bet big on seemingly any technology that underpins AI, but Nvidia is top of that long list. Its chips already excelled at parallel processing and handling a bombardment of training data used by AI applications, making Nvidia the go-to name for hardware and know-how.
Nvidia is “in the pole position right now,” Zeno Mercer, senior research analyst at ROBO Global, said. “It is actually providing the tech needed to service this wave of innovation and utilization.”