Chipmaker Nvidia hit a $1 trillion market cap at the open Tuesday, joining a small club of tech companies that have achieved this milestone.
According to a CNBC report, Nvidia’s shares rose nearly 6 per cent in morning trade. The report said that the company stocks will have to hold above $404.86 to maintain that distinction throughout the day.
The gaming and AI chip company shares rose 4.2 per cent in early trading on Tuesday, according to the news agency.
Taiwan Semiconductor Manufacturing (TSMC) is the next largest chipmaker globally, valued at about $535 billion, the report noted.
Fewer than 10 companies globally have ever achieved a market capitalization level of $1 trillion, including Alphabet, Amazon.com, Apple, and Microsoft.
According to the report, Meta Platforms Inc, valued at about $670 billion as of its last close, clinched the trillion-dollar market capitalization milestone in 2021.
According to CNBC, last week, the stock of the chipmaker soared following the release of its quarterly earnings report, which surpassed consensus estimates by a significant margin in terms of both revenue and profit. Nvidia’s impressive performance also uplifted other chipmakers, except for Intel, and was partly driven by unexpectedly optimistic forecasts.
Nvidia forecasted $11 billion in sales for the second quarter of 2024. Expected sales were 50 per cent higher than consensus estimates of $7.15 billion. The Reuters report noted that this forecast left Wall Street analysts astounded, with many labeling it as “unfathomable” and “cosmological.”
Analysts rushed to increase their price targets for the company, with the highest valuation reaching around $1.6 trillion, placing Nvidia on par with Google-parent Alphabet.