AI demand briefly catapults Nvidia into a $1 trillion club

Nvidia's share price has more than tripled since October last year as demand for AI technologies increases.

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Computer chipmaker Nvidia briefly joined the exclusive corporate club with a $1 trillion market capitalization as market demand for artificial intelligence (AI) technology reached a crescendo.< /p>

The milestone was reached on May 30 during morning trading hours in the United States by the computer chip and graphics card maker, with its shares hitting a daily high of over $418 according to Google Finance.

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Nvidia shares closed the day at just over $401 and the company currently has a market capitalization of $992 million.

NVIDIA stock price during the last year. Source: TradingView.

Only four companies in the United States have a valuation above $1 trillion: Apple, Microsoft, Amazon and Alphabet, the parent company of Google.

Nvidia has seen a year-to-date gain of over 180% due to growing demand for graphics processing units (GPUs) that power generative AI tools.

According to a May 30 Reuters report, analysts said that 80% of these GPUs are currently manufactured by Nvidia.

Some may see Nvidia's recent price spike as a sign of an overheated market, but other analysts suggest Nvidia still has a lot of room to grow, suggesting that the AI ​​boom is not going anywhere. what to start.

"Technical traders and AI madness have pushed Nvidia towards the $1 trillion cap and it's not cheap," said Jim Kelleher,...