Nvidia Corporation reached a $1 trillion market cap on Tuesday, thereby becoming the first-ever chipmaker to reach this valuation. The company’s stock rose 4% to $406 during early trading.
The company’s growth has been fuelled by the ongoing AI boom, with the company developing a range of high-powered graphics cards and server products in a bid to edge out competitors. On Monday, Nvidia announced the development of a new supercomputer to support its surging AI demand as well as a platform that will utilize AI in video game development.
Since the start of the year, Nvidia’s stock has skyrocketed by 165%. This includes a 26% rise last Thursday after the company announced strong quarterly results that beat analysts’ estimates.
Following the release of its quarterly results, Nvidia rose its second-quarter outlook and now expects revenue of $11 billion, exceeding Wall Street estimates of $7.2 billion.
“There’s a war going on out there in AI, and Nvidia today is the only arms dealer out there,” Raymond James managing director Srini Pajjuri stated in a note to investors. “So as a result we’re seeing this huge jump in revenues.”