Nvidia Joins $1 Trillion Club Amid AI Technology Demand Surge

Nvidia briefly joined the exclusive club of companies with a market capitalization of $1 trillion as demand for artificial intelligence (AI) technology reached a fever pitch.

According to Google Finance, the milestone was reached on May 30 during morning trading hours in the United States by the computer chip and graphics card manufacturer, whose shares reached a daily high of over $418.

The closing price of Nvidia shares was just over $401, and the company has a current market capitalization of $992 million.

In the United States, only four companies are worth more than $1 trillion: Apple, Microsoft, Amazon, and Alphabet, Google’s parent company.

Nvidia has seen a year-to-date increase of over 180 percent due to a surge in demand for graphics processing units (GPUs) that power artificial intelligence (AI) generators.

According to a May 30 report by Reuters, 80 percent of these GPUs are currently produced by Nvidia.

Some may interpret Nvidia’s recent breakout price action as a sign of an overheated market.

However, other analysts believe there is still ample room for Nvidia to grow, with some speculating that the AI boom is just beginning.

Jim Kelleher, an analyst at Argus Research, stated, “Technical traders and AI mania have pushed Nvidia toward the $1 trillion cap, and it’s not cheap.”

Nvidia is not the only company attempting to bring AI-ready chips to market.

Reportedly, Microsoft is developing its AI chip to power AI applications for Sam Altman’s artificial intelligence company OpenAI and its internal projects.

According to a source close to the situation, former Twitter CEO Elon Musk purchased thousands of available processing units in April for an upcoming Twitter AI project.

While U.S. tech companies and chip manufacturers scramble to catch up on artificial intelligence, Chinese developers find ways to circumvent sanctions prohibiting the local acquisition of the most recent version of Nvidia chips.