Nvidia, a leader in the field of microchips, achieved an impressive market capitalization of 1 trillion dollars, outperforming competitors. This significant success reflects the growing interest of Wall Street investors in technology companies., able to take full advantage of the latest advances in artificial intelligence.
Nvidia Corp.: the first microchipmaker with a capitalization of over $1 trillion
The American company Nvidia Corp., graphics chip manufacturer, became the first chipmaker, whose market capitalization exceeded the $1 trillion, according to Barron's publication. During trading on Tuesday, the company's shares rose by 5,5% and reached the mark of $410,7 per share. Thanks to the growing market for artificial intelligence, Nvidia significantly increased its second-quarter revenue forecast to around $11 billion, What's on 50% exceeded Wall Street forecasts ($7 billion). The first quarter report also confirms, that artificial intelligence technologies contribute to the company's record sales.
Nvidia joins the club of companies with a market capitalization of over $1 trillion
Founded 30 years ago in Silicon Valley, Nvidia has joined the elite club of American companies, like Apple and Microsoft, whose market capitalization exceeds $1 trillion. On Tuesday, Nvidia's share price on the New York Stock Exchange rose to $412, which indicates an increase of more than 30% for the past week.
Jensen Huang: “The world has reached the tipping point of a new era of computing”
Nvidia CEO Jensen Huang unveiled the company's new products at Computex in Taipei, related to artificial intelligence, and stated, what “the world has reached the tipping point of a new era of computing”. Nvidia, originally known as a manufacturer of computer chips for processing charts, excels in this field. However, Huang previously bet on artificial intelligence, investing in additional features for Nvidia chips long before, how this technology became widely popular.
Powerful Nvidia chips: key players in artificial intelligence
Powerful Nvidia chips today, including H100, are the basis of most artificial intelligence applications. For example, chat bot ChatGPT, generated huge interest in artificial intelligence technologies after its launch last year, was trained using 10 thousand Nvidia GPUs, installed in a Microsoft supercomputer.
Growing value of Nvidia stock: investor confidence and expectations
Nvidia's share price has more than doubled in the past year, as investors bet on the high profits of the company. Nvidia told investors last week, which expects a revenue of $11 billion in the next three months, which is almost double the analysts' forecasts.
Challenges and prospects: competition and demand support
but, to live up to expectations, related to the high valuation of the company, difficulties may arise. During the pandemic, Nvidia faced difficulties, and last year her earnings remained virtually unchanged, and profits halved. Besides, the company faces growing competition from AMD and Intel, who are actively developing their own artificial intelligence solutions. However, the demand for AI technology continues to grow., and Nvidia will aim to support this demand in the coming years.
conclusions
Nvidia has deservedly achieved a market capitalization of 1 trillion dollars, strengthening its leadership in microchips and artificial intelligence. Her constant innovation and investment in technology development has enabled her to become a key player in the industry and win the trust of investors.. but, to keep your position, Nvidia must overcome the challenges of competition and continue to support the growing demand for AI technology. Worth Expecting, that the company will continue to innovate and develop, to remain a leader in your industry.
