/cdn.vox-cdn.com/uploads/chorus_asset/file/23962442/acastro_STK067__03.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24247717/lp_logo_3.0.jpg){kind=logo}
/cdn.vox-cdn.com/uploads/chorus_asset/file/24016885/STK093_Google_04.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24808816/Starfield__The_Settled_Systems___Supra_Et_Ultra_____Starfield__The_Settled_Systems___Su)
[ad_1]
Computer chip maker Nvidia briefly joined the exclusive club of companies with a market capitalization of $1 trillion as market demand for artificial intelligence (AI) technology reached a peak.
The milestone was hit on May 30 in United States morning trading hours by the computer chip and graphics card maker, with its shares hitting a daily high of more than $418. According Google for Finance.
Shares of Nvidia closed at just $401 at the end of the day and the firm currently has a market cap of $992 million.
In the United States, there are only four companies with a valuation of more than $1 trillion: Apple, Microsoft, Amazon and Alphabet – Google’s parent company.
Nvidia has seen year-over-year growth of more than 180% due to increased demand for graphics processing units (GPUs), which power generative AI tools.
May 30 according to Reuters reportsAnalysts said that 80% of these GPUs are currently manufactured by Nvidia.
Some may see Nvidia’s recent breakout price action as a sign of an overheated market, but other analysts suggest there is still plenty of room to grow with Nvidia suggesting that the AI boom may be just beginning.
“Tech traders and the AI frenzy have pushed Nvidia toward a $1 trillion cap, and it’s not cheap,” said Jim Kelleher, an analyst at Argus Research.
Connected: Nvidia introduces AI supercomputer to build ChatGPT successor
Nvidia isn’t alone in its quest to bring AI-ready chips to market. Microsoft is reportedly developing its own AI chip to power AI applications for Sam Altman’s artificial intelligence firm OpenAI as well as for its own internal projects.
In April, former Twitter CEO Elon Musk bought thousands of general processing units for an upcoming Twitter AI project, according to a source close to the matter.
While tech companies and chip makers in the US are scrambling to get up to speed on all things AI, Chinese developers are finding ways to work around restrictions that have put restrictions on getting the latest version of Nvidia chips locally has been installed.
AI Eye: Earn 500% From ChatGPT Stock Tips? Bard Left Left, $100M AI Memecoin
