30th May 2023 – (Santa Clara) Nvidia Corp is on track to achieve a market capitalisation of $1 trillion for the first time, making it the first US chipmaker to join the trillion-dollar club. The company’s shares were up 3.8% at $404.17 in premarket trading on Tuesday.
In 2021, Meta, valued at about $670 billion, was the first company to achieve the trillion-dollar market capitalisation milestone, followed by Apple Inc, Alphabet Inc, Microsoft Corp, and Amazon.com Inc.
Nvidia stunned investors with a revenue forecast that exceeded analysts’ expectations by more than 50%, placing AI at the center stage.
Last week, after Nvidia’s stellar results, the Philadelphia SE Semiconductor index closed at its highest in over a year, driving other chipmakers higher.
Nvidia’s potential entry into the trillion-dollar club is a testament to the growing importance of the semiconductor industry in the global economy and the increasing adoption of AI technologies across various sectors.
The company’s success is also indicative of the growing demand for high-performance computing solutions in industries such as gaming, data center, automotive, and healthcare.
As the demand for AI technologies continues to grow, Nvidia is well-positioned to capitalise on this trend and maintain its leadership in the semiconductor industry.