American tech giant?Nvidia on May 30 became the world¡¯s first chipmaker and only the ninth company in the world to hit the $ 1 trillion market cap.?Nvidia joined the elite club that has US giants such as Apple and Microsoft, as the chipmaker has quickly become one of the biggest winners of the AI boom.
However, Nvidia's market cap ended the day at $992 billion, which was a bit below the milestone mark that it touched during the trading session.
Here¡¯s the list of all the 9 companies in the world that have hit the $1 trillion market cap till date,? and the year in which they hit the milestone.
1.Nvidia?
2023
2.Apple?
2018
3.Saudi Aramco
2019
4.Alphabet
2020
5.Meta
2021
6.Microsoft
2019
7.PetroChina
2007
8.Tesla
2021
9.Amazon
2018
Also Read;?Amazon Becomes First Public Company To Lose $1?Trillion?Market Value
The stock's value has tripled in less than eight months, reflecting the surge in interest in artificial intelligence following rapid advances in generative AI, which can engage in human-like conversation and craft everything from jokes to poetry.
Nvidia has gained about 200% since October, far outpacing any other member of the broad-market S&P 500 index. The rally has propelled its valuation past its peers, but some analysts say the AI boom means the stock should still be worth more, as per Reuters report.
No other company embodies Wall Street¡¯s current obsession with AI more than Nvidia. Nvidia has become the world¡¯s biggest maker of the specialized chips needed to power a new generation of AI products, surpassing Advanced Micro Devices Inc. and Intel Corp. in capability just as the viral success of ChatGPT has virtually every company around the world baking AI into its operations, as per Bloomberg report.
The latest surge furthers a rally from last week, which was jump-started by a revenue forecast that surpassed the mean Wall Street estimate by more than 50%, which some analysts called "unfathomable" and "cosmological."
The highest price target values the company at about $1.6 trillion, on par with Google-parent Alphabet.?Nvidia's forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 47.23. The figure is significantly above that of peers Qualcomm (QCOM.O) and Intel (INTC.O) and also tops the sector median of 18.09, according to Refinitiv data.
Big Tech companies have shifted focus to AI, hoping the technology will attract demand. The computers that power generative AI run on powerful chips called graphics processing units (GPUs) - of which 80% are produced by Nvidia, according to analysts.
OpenAI-owned ChatGPT's rapid success has prompted tech giants such as Alphabet and Microsoft to make the most of generative AI, as per Reuters report.
Nvidia, led by CEO Jensen Huang, has pivoted to the data center market over the last few years after years as a powerhouse in videogame chips.
The company's business rapidly expanded during the pandemic when gaming took off, cloud adoption surged and crypto enthusiasts turned to its chips for mining coins. Huang's bet on AI is expected to fuel growth in the coming months.?Despite the sky-high valuation, analysts believe Nvidia's AI chips business has room for growth as generative AI technology is still at a nascent stage with wide adoption expected in the years to come.
Last week alone, Nvidia's shares rose about 25%, sparking a rally in AI-related stocks and boosting other chipmakers. That helped the Philadelphia SE Semiconductor index (.SOX) close at its highest in over a year on Friday.
Not everyone is bullish about the Nvidia stock despite the surge. As per Bloomberg report, Cathie Wood, whose flagship ARK Innovation ETF fund cut its holding in Nvidia in January, warned that the computer-chip industry¡¯s boom-bust cycles pose risks. ¡°There are a few reasons we take some pause,¡± she said, with competition growing among firms for a piece of the AI market. She called Nvidia a ¡°a check-the-box stock.¡±?
Cathie Wood's firm had earlier this year predicted that Bitcoin price will hit nearly $1.5 Million by 2030.
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