U.S. chipmaker Nvidia became the ninth company worldwide to reach a market capitalization of over $1 trillion, joining the ranks of Apple, Microsoft, Alphabet, and Amazon. As a key manufacturer of GPUs, Nvidia's chips drive generative AI, the technology powering AI systems like ChatGPT, Google's Bard, and Dall-E. In early trading, Nvidia shares surged by 7.7% to a record high of $419.38, lifting the stocks of other chipmakers and AI companies and adding to its gains from last week. - Nvidia is now the first chipmaker to reach a $1 trillion market value. The next largest chipmaker globally, Taiwan Semiconductor Manufacturing Co., is valued at $535B.
- Bolstered by huge demand for its AI chips, Nvidia last week reported better-than-expected first-quarter earnings and a Q2 outlook that stunned analysts and investors.
- The company said it expects Q2 revenue of $11B, over 50% higher than Wall Street's forecasts, and a 64% increase over the same period a year ago.
- Before Tuesday's opening, Nvidia shares were up 166.5% year to date.
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