Nvidia achieves historic milestone valued at over $1 trillion

Shares of the gaming and AI chip company experienced a 4.2% rise in early trading on Tuesday, leading to a valuation of $1 trillion. This places the company among the elite few with such a massive market capitalization. Currently, the next largest chipmaker globally is Taiwan Semiconductor Manufacturing Co Ltd, valued at approximately $535 billion. Meta Platforms Inc achieved the trillion-dollar market capitalization milestone in 2021, while Apple Inc, Alphabet Inc, Microsoft Corp, and Amazon.com Inc are other notable U.S. companies in this exclusive club.

Financial analysts on Wall Street were astounded by Nvidia's forecast, describing it as "unfathomable" and "cosmological." In response, they substantially raised their price targets, with the highest valuation reaching around $1.6 trillion, on par with Google-parent Alphabet. Nvidia's remarkable revenue forecast, surpassing analysts' expectations by over 50%, propelled AI into the spotlight, igniting a surge in AI-related stocks and boosting other chipmakers. This positive market sentiment resulted in the Philadelphia SE Semiconductor index closing at its highest point in over a year on Friday.

The extraordinary success of OpenAI-owned ChatGPT has prompted tech giants like Alphabet and Microsoft to capitalize on generative AI, which enables human-like conversation and the creation of various content ranging from jokes to poetry.