Nvidia becomes first chipmaker worth more than $1 trillion

Nvidia joined the trillion-dollar club after its stock rose 4.2% and traded around $409 per share before the open on May 30.

The Santa Clara, California-based company joins the ranks of tech giants Microsoft, Alphabet, Amazon and Apple in surpassing a $1 trillion market capitalization, making NVDA the ninth stock to reach that milestone.

This figure is double the capitalization value of Taiwan Semiconductor Manufacturing Co (TSMC), the world's second-largest chipmaker ($535 billion).

NVDA jumped more than 26% on May 25 after the company reported better-than-expected quarterly results on May 24. The stock is up about 165% year-to-date.

Notably, Nvidia forecasted revenue of $11 billion with a margin of error of just 2% in the second quarter of 2024. This is 50% higher than the consensus estimate of $7.15 billion.

Jensen Huang, co-founder and CEO of Nvidia. Nvidia's market value increased by $207 billion in two days after the company gave a better-than-expected revenue outlook on May 24. Photo: USA Today

One of the factors contributing to Nvidia's stock market rally in the first half of the year was the ongoing artificial intelligence (AI) craze.

The explosion of OpenAI's ChatGPT chatbot late last year has sent tech companies racing to launch their own generative AI solutions, leading to increased demand for the advanced chips used for these products.

Amid the AI ​​craze, Stifel analyst Ruben Roy raised his price target on Nvidia shares to $300 from $225 last week. According to Roy, Nvidia remains the company best positioned to benefit from the AI ​​investment cycle in the medium term .

Nguyen Tuyet (According to Reuters, CNBC, Finbold)

Source: https://www.nguoiduatin.vn/nvidia-tro-thanh-nha-san-xuat-chip-dau-tien-tri-gia-hon-1-000-ty-usd-a610346.html