Nvidia shares have enjoyed a 180% surge this year amid AI optimism
Nvidia Corp. officially joined vaunted company Tuesday, becoming just the seventh public U.S. company to finish a trading session in $1 trillion territory.
The chip giant accomplished something it had failed to do late last month as it officially closed with a market capitalization above $1 trillion. Nvidia shares NVDA, +3.90% previously flirted with intraday levels that would have equated to a $1 trillion valuation but failed to finish a trading session above the mark.
Nvidia’s stock gained 3.9% in Tuesday trading to finish with a market cap of $1.01 trillion. Only Apple Inc. AAPL, -0.26%, Amazon.com Inc. AMZN, +0.07%, Alphabet Inc. GOOG, +0.06% GOOGL, +0.15%, Tesla Inc. TSLA, +3.55%, Meta Platforms Inc. META, +0.10% and Microsoft Corp. MSFT, +0.74% previously crossed the $1 trillion threshold at the close of a trading day, according to Dow Jones Market Data. Tesla and Meta have since dropped out of the $1 trillion club.
The market-cap milestone comes amid a stunning year-to-date rise for Nvidia shares, which are up 181% over that span amid optimism about the company’s ability to benefit from a growing rush among companies to train and deploy artificial intelligence.
Nvidia is “uniquely positioned with a full-stack of AI silicon, software, scale, supply and developer ecosystem to transform the nearly $1 trillion traditional data-centers market,” BofA Securities analyst Vivek Arya wrote in a late May note to clients.
Shares of Nvidia outperformed the PHLX Semiconductor Index SOX, +1.15% in Tuesday’s session, while shares of rival Advanced Micro Devices Inc. AMD, -3.61% ended 3.6% lower in the day’s trading following a series of product announcements. AMD is looking to compete with Nvidia’s Grace Hopper data-center central processing unit with one new offering.