Nvidia Surpasses $1tn As First AI Chipmaker

NASDAQ:NVDA

Nvidia went up in value and is now worth $1tn. They are the first chipmaker to achieve this. This was due to high demand for their products. People want their products to meet the needs of artificial intelligence (AI).

The gaming and AI chip company's shares went up by 4.2% in the morning of Tuesday. It has surpassed a significant level.

Last Thursday, the company's worth rose by 25% to $940bn. This came after they released a forecast predicting future revenues of $11bn for July. Wall Street had predicted $7.2bn.

Nvidia's prediction amazed Wall Street experts. They couldn't believe it and raised their targets happily.

Many companies are trying to use AI for their businesses. Some experts think there might be a bubble, and chip companies are caught in the middle of the tension between the US and China.

AI craze helps businesses like Nvidia with hardware needs for complex models.

Nvidia had a tough year in 2022. Demand for its graphics chips slowed down. They also couldn't buy Arm from SoftBank because of regulations.

This year, its share price has doubled due to optimism about generative AI products. These products need big data centres with many semiconductor chips.

Nvidia now joins some other US companies in the $1tn club. The other companies are Apple, Amazon, Microsoft, and Alphabet. Meta also made it to the $1tn milestone in 2021, but now its value is about $670bn.

Thomas Hayes of Great Hill Capital called Nvidia the AI leader. People are unsure if the AI trend is real.

ChatGPT, owned by OpenAI, is doing really well. Other big tech companies, like Alphabet and Microsoft, are now interested in using the same kind of artificial intelligence that ChatGPT uses. This kind of AI can talk like a human and create things like jokes and poetry.

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