Nvidia becomes the first US chipmaker to be valued at more than $1 trillion
(Reuters) – Nvidia Corp. on Tuesday sought to crack the $1 trillion market cap for the first time, becoming the first U.S. chipmaker to join the trillion-dollar club.
The company’s shares were last up 3.5% at $402.91 in premarket trading.
The meta, valued at about $670 billion at the latest close, could have shed $1 trillion in market capitalization in 2021, while Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com are other US companies in the club.
Artificial intelligence took center stage after Nvidia surprised investors last week with a revenue forecast that beat analysts’ forecasts by more than 50 percent.
Wall Street analysts called Nvidia’s forecasts “unfathomable” and “cosmic” as it massively raised its price targets. The company’s highest price target was $1.6 trillion, which is the same as Google subsidiary Alphabet.
Shares of Nvidia rose about 25% last week, led by a rally in AI-related stocks and support from other chipmakers, helping the Philadelphia SE Semiconductor index close Friday at its highest level in more than a year.
The rapid success of OpenAI-owned ChatGPT has led tech giants such as Alphabet and Microsoft to embrace generative AI, which can engage in human-like conversation and create everything from jokes to poetry.
