What happened: Driven by huge demand in accelerated computing and generative AI, Nvidia experienced a 26% surge in its share price Thursday, placing it on track to become the fifth U.S. publicly traded company valued above $1 trillion. Details: The world's most valuable chipmaker on Wednesday predicted $11B in sales for the upcoming quarter, surpassing analysts' estimates of $7.2B. Its Q2 outlook exceeded expectations, projecting over 50% higher revenue and promising a greater supply of its in-demand AI chips. Coupled with strong earnings, the chip maker saw its market valuation grow to more than $940B on Thursday, up from $755B the day before. Why it matters: If Nvidia's gains hold during trading, it could beat Apple's record for the biggest one-day increase in market value in U.S. history. Nvidia would need its stock price to reach $404.86 to secure a $1 trillion market valuation, a milestone only achieved by eight other companies, including Apple, Microsoft, Alphabet, and Amazon. The big picture: The rise of AI tools like ChatGPT has boosted demand for Nvidia chips, which are integral in the development of AI systems. Its involvement in GPU chips for machine learning is attracting high demand from major cloud providers and consumer internet companies.
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