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Computer chip maker Nvidia briefly joined the exclusive club of companies with a $1 trillion market cap as market demand for artificial intelligence (AI) technologies reached a climax.
The milestone was reached on May 30 during U.S. morning trading hours by the computer chip and graphics card maker, whose shares hit a daily high of more than $418, according to Google Finance.
Nvidia shares closed at just over $401 and the company currently has a market capitalization of $992 million.
There are only four companies in the United States that are valued at more than $1 trillion: Apple, Microsoft, Amazon, and Alphabet, Google’s parent company.
Since the beginning of the year, Nvidia has seen growth of over 180% due to a sharp increase in demand for graphics processing units (GPUs) that power generative artificial intelligence tools.
According to a May 30 Reuters report, analysts say 80% of these GPUs are currently manufactured by Nvidia.
Some may see Nvidia’s recent price spike as a sign of an overheated market, but other analysts suggest there’s still plenty of room for growth for Nvidia, with speculation that the AI boom may have just begun.
“Tech traders and AI mania have pushed Nvidia up to a $1 trillion ceiling, and it’s not cheap,” said Jim Kelleher, an analyst at Argus Research.
Related: Nvidia Unveils AI Supercomputer to Build ChatGPT Successors
Nvidia is not alone in its quest to bring AI-enabled chips to market. Microsoft is reportedly developing its own AI chip to power AI applications for Sam Altman’s artificial intelligence company OpenAI, as well as for its own internal projects.
While tech companies and chipmakers in the US are struggling to master all things AI, Chinese developers are finding ways to circumvent sanctions that prevent local purchase of the latest version of Nvidia chips.
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