Nvidia hits $1 trillion market cap
Chipmaker Nvidia briefly achieved a $1 trillion market capitalisation on Tuesday, joining a small group of mostly technology firms. Nvidia’s stock soared after the company posted Q1 earnings that significantly beat estimates, buoyed other chipmakers and defied the downward trend of competitors such as Intel. Nvidia also posted sales forecasts that were 50% higher than expected for Q2 of 2024, highlighting its strength in peripherals such as graphics processing units, which are crucial to generative AI platforms such as OpenAI’s ChatGPT and Google’s Bard.
Significantly, Nvidia forecast $11 billion in sales for the fiscal second quarter of 2024 alone, 50% higher than consensus estimates of $7.15 billion. Nvidia’s shares were already up 166.5% year-to-date prior to Tuesday’s open.
The company’s success is in part due to the growth of the AI and crypto mining sectors, which have upended traditional GPU perceptions, making them an increasingly important component of modern computing.
FAQs
What is Nvidia’s market capitalisation?
Nvidia briefly achieved a $1 trillion market capitalisation on Tuesday.
What drove Nvidia’s market cap growth?
Nvidia’s market cap was driven by the company’s Q1 earnings, which significantly beat estimates and buoyed other chipmakers. Nvidia also posted sales forecasts that were 50% higher than expected for Q2 of 2024.
Why is Nvidia successful?
Nvidia’s success stems from the growth of the AI and crypto mining sectors, where GPUs are increasingly important components of modern computing. Nvidia has historically been a leader in these fields.
What other companies have a $1 trillion market cap?
Nvidia’s expected market cap would place it alongside Apple, Alphabet, Amazon, and Microsoft, all of whom have a $1 trillion market cap.
Nvidia’s Market Cap Soars to $1 Trillion.
Nvidia, the chipmaker known for its graphics processing units (GPUs), briefly reached a market cap of $1tn at the opening bell on Tuesday, a distinction shared by few technology companies. Nvidia shares need to maintain $404.86 to remain above the trillion dollar threshold throughout the day. Nvidia shares shot up last week after exceeding consensus quarterly earnings estimates, boosting other chip makers but not including Intel. Nvidia has set a target of $11bn in sales for Q2 2024 alone, 50% higher than the $7.15bn expected. The increased demand for AI has led to a surge in chip maker and supplier share prices over the past few months, with Nvidia among the winners at the expense of Intel.