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Nvidia’s shares rose 4.2pc on Wall Street today, which analysts described as ‘unfathomable’ and ‘cosmological’.
Chip giant Nvidia has hit a major milestone in surpassing the $1trn valuation mark. Its membership of an elite group of trillion-dollar companies is notable because it is one of the first chipmakers to achieve this.
Apple, Alphabet, Microsoft and Amazon have all surpassed trillion-dollar valuation status. Meta used to be a member of the so-called trillion dollar club, too. In January 2022, Apple surpassed the $3trn dollar mark, becoming the world’s first company to do so.
Nvidia’s surge in growth in recent times has largely been driven by its decision to go all in on AI tech.
Yesterday (29 May) it revealed details about an AI supercomputer that will help companies develop generative AI models.
Nvidia CEO Jason Huang hinted yesterday that the new Nvidia DGX GH200 supercomputer is considerably more powerful than its predecessor from 2020.
It connects 256 of Nvidia’s Grace Hopper superchips into a single massive 144TB graphics processing unit (GPU) that can deliver up to 1 exaflop of computing power for giant generative AI models, among other applications.
“Generative AI, large language models and recommender systems are the digital engines of the modern economy,” Huang said in a keynote speech to mark the computer’s launch yesterday.
The California-headquartered company is also currently in a multi-year partnership deal with Microsoft to build a powerful AI supercomputer.
When it released its latest earnings data last week it said that it expected to earn $11bn over the next financial quarter due to “surging demand” for its AI products.
Today (30 May) Nvidia’s shares rose 4.2pc on Wall Street, which analysts described as “unfathomable” and “cosmological”.
It surpassed their expectations by more than 50pc. The surge in Nvidia’s shares has caused its valuation to increase, leading analysts to raise their price targets on the stock.
Reuters reported that the company’s shares jumped by as much as a quarter last week.
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