Nvidia Approaches $1 Trillion Valuation as AI Boom Drives Stock Surge

Some U.S. companies have reached a $ 1 trillion market value with Nvidia being the latest. In eight months, the chipmaker’s stock price has tripled. This reflects the growing interest in artificial intelligence (AI), particularly generative AI, which has rapidly advanced capabilities such as human-like conversation and creative performance. Nvidia’s stock price appreciation has outpaced other companies in the S&P 500 index, and the company’s valuation exceeds that of its peers. Analysts believe the AI boom suggests the stock should be worth even more.

Trade Nvidia

Nvidia shares closed at $401.11, approaching the $1 trillion valuation mark. Only four other U.S. companies — Apple, Alphabet, Microsoft, and Amazon — have a market value of more than $1 trillion. Analysts consider Nvidia the most essential company in an era when AI capabilities are becoming increasingly important. Despite the high valuation, analysts believe Nvidia’s AI chip business still has room for growth due to the early stages of generative AI applications. Nvidia has seen a surge in demand for its AI chips, with revenue from this sector increasing by more than 50% year-over-year. With the continued growth of AI applications, Nvidia is well-positioned to benefit from the trend.