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- 1 The market cap of the GPU manufacturer surged to unprecedented levels.
- 2 Though the position was short-lived, Nvidia poised itself as a strong contender.
Chip manufacturer Nvidia (NASDAQ: NVDA) is on its way to becoming a “giant.” The burgeoning artificial technology (AI) sector is pushing the company’s performance. NVDA stock recently attained its all-time high. The rise made the company join the elite club of companies with a 1 Trillion USD market capitalization.
Following the upward trend, NVDA stock price traded over 419 USD on Tuesday, May 30. With the stock price hitting its all-time high before sliding back to 401 USD, Nvidia hit a market cap of 1 Trillion USD. The market cap slid back to 992 Million USD at the time of writing.
The acceleration of NVDA stock price and market cap increasing up to the unprecedented highs claimed to come in the wake of an overheated market. However, analysts think that the reason behind the growth is much bigger and stable in the long term.
The acceleration of NVDA stock price and market cap increasing up to the unprecedented highs claimed to come in the wake of an overheated market. However, analysts think that the reason behind the growth is much bigger and stable in the long term.
Nvidia Boarding the Speeding Up “AI” Train
Recently, Reuters reported citing analysts who stated that Nvidia produces 80% of the graphical processing units (GPUs) employed for the generative AI tools operations.
The demand for these Nvidia GPUs has grown significantly more than 180%. The demand for these chips has risen since the start of this year.
These instances indicate the potential growth of the broader AI sector, reflecting upon companies like Nvidia with deep involvement. Companies in the chipmaking segment have shifted their strategy towards artificial intelligence, and it’s boosting the industry’s growth.
Nvidia set its foot in the sector more than its significance, which was previously considered limited to intensive gaming and crypto mining operations. The company has been leading the sectors now, repeating a similar story in the field of AI. Currently, its GPUs are playing crucial roles in terms of ChatGPT and Bard-like generative AI platforms.
Taking Place Aside the Giants
Data shows the United States alone is the home of more than 500K tech companies overall. Out of these companies, only four companies were able to reach a market cap of 1 Trillion USD. It includes the tech giant, Apple Inc. (NASDAQ: AAPL) that stands at the top with 2.759 Trillion USD, followed by another giant, Microsoft (NASDAQ: MSFT) holding 2.475 Trillion USD in market cap.
The parent company of search engine giant Google, Alphabet Inc. Class A (NASDAQ: GOOGLE), has a market cap of 1.587 Trillion USD. And then, the e-commerce company Amazon (NASDAQ: AMZN) comes at the fourth position in terms of holding a maximum market cap of 1.232 Trillion USD.
The short trip of Nvidia (NASDAQ: NVDA) in the 1 Trillion market cap companies club made it fifth in the group.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
