And then there were five.
Nvidia is the latest company whose market capitalization briefly crossed the $1 trillion mark, as its stock jumped more than another 4 % in early trading Tuesday, before losing a little ground.
That puts the company in the same league as Apple, Microsoft, Alphabet and Amazon.
The stock has been soaring since its earnings report on May 24 that blew past earnings expectations and positioned the graphics chip company as a leader in the AI space.
Shares topped $404.86 briefly in early trading, putting it above the $1 trillion mark. After briefly hovering slightly above and below that level, the stock jumped again to more than $417 per share as stocks resumed trading after the Memorial Day holiday.
Nvidia is the first U.S.-based chipmaker to ever be valued at over $1 trillion.
Nvidia, last week, said it expected to hit $11 billion in sales for the fiscal second quarter of 2024. The companys graphics processing chips, which have traditionally been used for gaming (and more recently cryptocurrency mining) are critical to building generative AT platforms. It takes thousands to run a single AI system like ChatGPT.
While its still well below Apples $2.8 trillion market cap, Nvidia has lots of room to grow, according to analysts. Bank of America, last week, said the company had established itself as an AI leader and said the market cap is set to soar to $1 trillion and beyond. The financial institution current has a price target of $450 on Nvidia.
Susquehanna Financial Groups Christopher Rolland and Matt Myers are equally as bullish about the company, writing in a note It looks like the new gold rush is upon us, and NVIDIA is selling all the picks and shovels.
Year to date, Nvidia shares are up more than 190%.
