Nvidia, a technology company known for its graphics processing units (GPUs) and artificial intelligence (AI) tools, has reached a market cap above $1 trillion for the first time in its history. The company's stock has soared by 187% this year alone, largely due to the increasing demand for its AI technology. Nvidia's latest boost came from the announcement of a series of new AI products and partnerships over the weekend.
Investors and analysts alike have placed high hopes on Nvidia's potential to lead the AI race, and its GPU technology is seen as the best fit for running chatbots such as OpenAI's ChatGPT and Google's Bard. The stock's outstanding performance has contributed significantly to the Nasdaq 100's 32% gain this year.
Nvidia's shares rose as much as 7.7% to $419.38 on Tuesday, giving it a market cap of $1.036 trillion. Amazon, Apple, Alphabet, Microsoft, and Saudi Arabia's oil company Saudi Aramco are the only other companies in this valuation range.
The company's latest AI-related products, including the Grace Hopper superchips and DGX GH200 AI Supercomputer, have attracted attention and boosted Nvidia's stock. The company has also partnered with advertising heavyweight WPP to build a platform for computer-generated ads.
Nvidia CEO Jensen Huang has expressed confidence in the company's AI tools and has stated that anyone can be a programmer with the new AI tools. Huang said, "The programming barrier is incredibly low. Everyone is a programmer now—you just have to say something to the computer."
Last week, Nvidia's first-quarter earnings and second-quarter guidance trounced analyst expectations, leading to a surge in the company's shares. Investors are optimistic about Nvidia's future prospects in the AI industry, which has contributed to its current market cap.