And then there were five.
Nvidia is the latest company whose market capitalization crossed the $1 trillion mark, as its stock jumped more than 4% in early trading Tuesday, before losing a little ground.
That puts the company in the same league as Apple, Microsoft, Alphabet, and Amazon.
The stock has been soaring since its earnings report on May 24 that blew past expectations and positioned the graphics chip company as a leader in the A.I. space.
Shares topped $404.86 briefly in early trading, putting it above the $1 trillion mark. After hovering slightly above and below that level, the stock jumped again to more than $417 per share as stocks resumed trading after the Memorial Day holiday.
Nvidia is the first U.S.-based chipmaker to ever be valued at over $1 trillion.
Nvidia, last week, said it expected to hit $11 billion in sales for the fiscal second quarter of 2024. The company’s graphics processing chips, which have traditionally been used for gaming and more recently for cryptocurrency mining, are critical to building generative A.I. platforms. It takes thousands of chips to run a single A.I. system like ChatGPT.
While it’s still well below Apple’s $2.8 trillion market cap, Nvidia has lots of room to grow, according to analysts. Bank of America last week said the company had established itself as an “A.I. leader” and said the market cap is set to soar to “$1 trillion and beyond.” The financial institution currently has a price target of $450 on Nvidia.
Susquehanna Financial Group’s Christopher Rolland and Matt Myers are equally bullish about the company, writing in a note: “It looks like the new gold rush is upon us, and Nvidia is selling all the picks and shovels.”
Year to date, Nvidia shares are up more than 190%.