{"id":1246081,"date":"2023-06-01T07:32:57","date_gmt":"2023-06-01T02:02:57","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1246081"},"modified":"2023-06-01T07:33:34","modified_gmt":"2023-06-01T02:03:34","slug":"nvidia-becomes-1st-chip-company-to-reach-1-trillion-market-value-how-this-happened","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/nvidia-becomes-1st-chip-company-to-reach-1-trillion-market-value-how-this-happened\/","title":{"rendered":"Nvidia Becomes 1st Chip Company To Reach $1 Trillion Market Value: How This Happened?"},"content":{"rendered":"\n

Nvidia has achieved a mammoth milestone by becoming the first chipmaker to reach a market valuation of over $1 trillion.<\/p>\n\n\n\n

\"Nvidia<\/figure>\n\n\n\n

On par with Alphabet<\/strong><\/p>\n\n\n\n

The company saw a 4.2% increase in its share price during early trading on Tuesday, leading to its valuation crossing <\/a>the $1 trillion mark.<\/p>\n\n\n\n

The highest price target values the company at about $1.6 trillion, on par <\/a>with Google-parent Alphabet.<\/p>\n\n\n\n

Taiwan Semiconductor Manufacturing Co Ltd is the next largest chipmaker globally, valued at about $535 billion.<\/p>\n\n\n\n

Part of trillion-dollar club<\/strong><\/p>\n\n\n\n

Meta Platforms Inc, valued at about $670 billion as of last close, clinched the trillion-dollar market capitalization milestone in 2021, while Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com Inc are the other U.S. companies that are part of the club<\/a>.<\/p>\n\n\n\n

To sum up Nvidia’s achievement, “Technical traders and AI mania have pushed Nvidia toward the $1 trillion cap and it is not inexpensive,” Argus Research analyst Jim Kelleher said<\/a>.<\/p>\n\n\n\n

Nvidia’s rise in fortune can be credited to investors betting heavily <\/a>into the company which has quickly become one of the biggest winners of the AI boom.<\/p>\n\n\n\n

Shift in focus to AI<\/strong><\/p>\n\n\n\n

Also to credit is the trend of companies big and small racing to add generative artificial intelligence tools to their products.<\/p>\n\n\n\n

Big Tech companies have shifted focus to AI, hoping the technology will attract demand.<\/p>\n\n\n\n

For instance, OpenAI-owned ChatGPT’s rapid success has prompted tech giants such as Alphabet and Microsoft to make the most of generative AI.<\/p>\n\n\n\n

The computers that power generative AI run on powerful chips called graphics processing units (GPUs) – of which 80% are produced by Nvidia, according to analysts.<\/p>\n\n\n\n

Pandemic impact<\/strong><\/p>\n\n\n\n

Business also took off during the pandemic when gaming became a huge market segment and tech such as cloud and crypto used Nvidia’s chips for mining coins.<\/p>\n\n\n\n

CEO Jensen Huang bet on AI is expected <\/a>to fuel growth in the coming months.<\/p>\n\n\n\n

The last quarterly earnings report from Nvidia noted over $2 billion in profit in three months.<\/p>\n\n\n\n

The stock’s value has tripled in less than eight months, reflecting the surge in interest in artificial intelligence following rapid advances in generative AI.<\/p>\n\n\n\n

Word of caution<\/strong><\/p>\n\n\n\n

Despite the tremendous valuation, analysts believe there is still room for growth since generative AI technology is still at a nascent <\/a>stage with wide adoption expected in the years to come.<\/p>\n\n\n\n

“Given the valuation is well above the long-term average, there will be significant pressure to deliver high growth on a consistent basis … there could be volatility in its share price to come,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said<\/a>.<\/p>\n\n\n\n

Image<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nvidia has achieved a mammoth milestone by becoming the first chipmaker to reach a market valuation of over $1 trillion. On par with Alphabet The company saw a 4.2% increase in its share price during early trading on Tuesday, leading to its valuation crossing the $1 trillion mark. The highest price target values the company […]<\/p>\n","protected":false},"author":24,"featured_media":1246091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[584,1717,101],"class_list":["post-1246081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chatgpt","tag-nvidia","tag-stock-market"],"acf":[],"yoast_head":"\nNvidia Becomes 1st Chip Company To Reach $1 Trillion Market Value: How This Happened? - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/nvidia-becomes-1st-chip-company-to-reach-1-trillion-market-value-how-this-happened\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nvidia Becomes 1st Chip Company To Reach $1 Trillion Market Value: How This Happened? - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"Nvidia has achieved a mammoth milestone by becoming the first chipmaker to reach a market valuation of over $1 trillion. 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