Nvidia joins elite $1 trillion valuation club thanks to AI boom

Nvidia Joins $1 Trillion Valuation Club: Nvidia, a renowned company that produces graphics processing units (GPUs), today (May 30) joined the elite club of $1 trillion-value companies as its valuation skyrocketed after a strong opening in US markets, according to a report by Reuters.

The report says that the company last week forecast its second-quarter revenue to be more than 50 per cent above Wall Street estimates, forcing leading analysts to increase their price targets. 

After scaling the $1 trillion peak, Nvidia joins the exclusive group of 6 companies that have market value of $1 trillion and above.

As per Forbes, Apple, Saudi Aramco, Microsoft, Alphabet, and Amazon are the only companies with $1 trillion valuation.

Companies like Tesla, Meta, and Chinese oil giant, PetroChina, are the only other companies to ever hit the $1 trillion mark.

The jump in the valuation of Nvidia came after its shares rose 4% in early trading today, registering a one-day gain of $40 billion, which skyrocketed its valuation beyond $1 trillion.

Nvidia has cashed in on the artificial intelligence boom as just in 2023, its stock is up 181.80 per cent, while in the last five years, its valuation has jumped a mind-boggling 526.8 per cent.

What is Nvidia?

Nvidia manufactures GPUs for advanced gaming. Jen-Hsun "Jensen" Huang, Curtis Priem and Chris Malachowsky founded the company in 1993, which is headquartered in Santa Clara, California. The company is also an established player of artificial intelligence and high-performance computing (CPU).