Today Nvidia crossed a major milestone: it has become valued as a $1 trillion company. Today Nvidia’s stock price hit a high of $419.38 and it has to stay above $404.86 to maintain its status as a $1 trillion company.
Nvidia’s stock price surged last week after it reported favorable quarterly earnings, which also ended up contributing to a rally for the Nasdaq as a whole. Nvidia’s top-line and bottom-line numbers both beat analyst estimates. Plus Nvidia also forecasted $11 billion in revenue for Q2 2024. The expected sales for the quarter ended up being about 50% higher than the $7.15 billion estimates.
One of the biggest reasons for Nvidia’s recent growth has to do with the demand for graphic processing units (GPUs) that are necessary for generative AI platforms such as ChatGPT and Google Bard.
Nvidia has long been the leader in GPUs, but prior to the AI boom, these technologies were utilized primarily for intensive gaming. And cryptocurrency mining tools also depend on GPUs as well.
The $1 Trillion Club
Who else is in the $1 trillion club? Nvidia joins the likes of Apple (about $2.8 trillion), Microsoft ($2.47 trillion), Saudi Arabian Oil (about $2.1 trillion), Alphabet ($1.58 trillion), and Amazon ($1.24 trillion).
