Nvidia's market capitalization reached one trillion dollars today, Friday, supported by strong demand for its chips that have made the Silicon Valley company a leader in the generative artificial intelligence boom. This milestone followed other forecasts of increased revenues for the chip designer, resulting in a market value increase of 277 billion dollars yesterday, marking the largest single-day gain on Wall Street.
Its rapid rise last year led analysts to liken it to the providers of picks and shovels during the 19th-century gold rush, as nearly everyone involved in generative AI, from OpenAI, the creator of ChatGPT, to Google, has utilized its chips. This propelled the company's market value from one trillion dollars to two trillion dollars in just about eight months, the fastest increase among American companies, and in less than half the time it took tech giants Apple and Microsoft.
Epic Ozkardiskaya, a senior analyst at Swissquote Bank, stated, “What will hinder AI companies today... the sector leaders... is not demand, but their capacity to meet the increasing demand.” The rapid growth has attracted analysts and investors from all over to Nvidia.
