For a brief while on Tuesday, Nvidia joined the rare trillion-dollar market cap club. It gave up the position and fell back to $992 billion by the end of the trading day.
There are only four American companies (Apple, Amazon, Alphabet and Microsoft), and Saudi Aramco, that are worth more than $1 trillion.
Nvidia closed the day at a new 52-week high of $401.11, up nearly three percent from Monday’s close. It needs to breach the $404.86 to hold on to its $1 trillion valuation.
Nvidia’s soaring stock and AI dominance
The chipmaker has emerged as one of the biggest gainers from the AI-related boom and its stock value has tripled in less than eight months. Nvidia’s GPUs (graphics processing units) are critical to generative AI platforms like OpenAI’s ChatGPT and Google’s Bard.
Nvidia forecast $11 billion in sales for the second quarter of fiscal 2024 alone. The expected sales were 50 percent higher than consensus estimates of $7.15 billion. Its shares are up nearly 170 percent year-to-date following Tuesday’s close.
Shares of other GPU manufacturers, like Advanced Micro Devices and Taiwan Semiconductor Manufacturing, have also moved significantly in the past few months, but another American giant, Intel, has lagged. In 2022, Intel reported more than $63 billion in revenue, compared with Nvidia’s $27 billion.
As of Tuesday, Apple remains the most valuable public-listed company in the world with a market cap of $2.78 trillion, followed by Microsoft ($2.46 trillion) and Saudi Aramco ($2.05 trillion).
Two other companies that touched the $1 trillion mark in 2021 before falling out are Meta Platforms, formerly Facebook, and Tesla.
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