Nvidia became the first chipmaker to surpass $1 trillion in market capitalization thanks to the rise of generative AI.
Last week, NVIDIA announced in its mid-week Q1 2023 quarterly report that the company’s CEO, Jensen Huang said the company is profiting from its first investment in various AI technologies. Nearly $200 billion in market capitalization was added in a single day after pointing it out.
The company’s stock today opened at $405 and hit a high of $419, making NVIDIA the fourth company to join the Trillion Dollar Club after Apple, Microsoft, Alphabet and Amazon. NVIDIA’s market cap has risen from $900 billion last week to $1.1 trillion at the time of writing.
Over the past year, NVIDIA has doubled its investor capital. Investments in AI have made the company even more lucrative for investors.
The California-based chipmaker has been busy in recent weeks doubling down on its AI investments with announcements at Microsoft Build 2023 and Computex 2023. This includes ACE for Games, a ChatGPT-like model for NPCs in games, the announcement of the DGX-GH200 to accelerate AI computing, and new AI enhancements for RTX GPUs
For now, NVIDIA’s biggest problem is meeting the exploding demand for GPUs that have led to a shortage. It has also taken more drastic measures, such as asking Intel to manufacture its GPUs, so that supply constraints at its foundry partner TSMC won’t hamper the company’s growth.
As NVIDIA continues to ride the wave of AI advancements, the company must navigate the complexities of meeting market demand while simultaneously proving its ability to sustain its current momentum. With its strategic investments and dedication to innovation, NVIDIA remains at the forefront of the AI revolution, solidifying its position as a leader in the industry.
