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Nvidia is first chip maker to hit $1 trillion

By Leah Montebello

NVIDIA has become the first chip manufacturer to hit a valuation of $1trillion (£807bn).

Shares have rocketed as the company cashes in on the artificial intelligence (ai) boom.

nvidia said sales would reach £9bn in the three months to July, smashing Wall Street estimates. The Californian firm clocked up one of the biggest ever one-day stock market increases in US company history last week – adding more than £150bn to its market cap on Thursday trade alone. The gain was close to the total value of Shell, the second largest firm on the Uk stock market.

and the surge has continued into this week. Shares traded at $406 yesterday, pushing nvidia into the elite club of Silicon Valley stocks to achieve a market cap over $1trillion. This group includes tech giants amazon, apple, google owner alphabet and Microsoft, as well as Saudi aramco. Facebook owner Meta and Tesla joined the trillion dollar club in 2021, but later tumbled out again as a result of a wider tech sell-off.

nvidia’s stock is up more than 175pc this year as analysts back the company to grow even bigger thanks to intense ai investment.

nvidia has played a key role in the growing popularity of ai, providing chips to the likes of Microsoft to develop the tech.

Chief executive Jensen Huang said it was in the right place at the right time when ai and ChatgPT took off.

The next largest chipmaker globally – Taiwan Semiconductor Manufacturing – is valued at about £431bn.

But nvidia’s recent success stands in stark contrast to its bumpy ride throughout 2022. it was battered by a slowing demand for its gaming chips and its failed attempt to buy the Uk-based chip designer arm from Japan’s SoftBank.

City Finance

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2023-05-31T07:00:00.0000000Z

2023-05-31T07:00:00.0000000Z

https://mailonline.pressreader.com/article/282565907521733

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