Riding high on the artificial intelligence boom, US chipmaker Nvidia Corp is on the verge of becoming the ninth company in history to reach a market value of $1 trillion.
Nvidia’s stock hit a record high of nearly 26 percent on Thursday after its blowout forecast expected about $11 billion of sales between May and June 2023, which is well above market forecasts.
At one point on Thursday, the chipmaker’s market worth increased by $199 billion to a record $955 billion, media reports said.
Meanwhile, traders betting against Nvidia suffered massive losses of $2.3 billion on the same day.
Nvidia’s single-day market value increase of $163 billion is one of the largest in US history. In November 2022, Apple’s stock rose $191 billion in a single day, while in February 2022, Amazon’s stock rose by a little lower amount.
Thanks to Thursday’s surge, Nvidia’s stock is now up 161 percent this year on the promise that the company’s chips will power the future of Artificial Intelligence (AI).
Since November 4, Nvidia is already the most-traded stock by retail traders, breaking Tesla’s long-standing streak.
Nvidia’s market value is double that of Taiwan’s TSMC, the second-largest chip manufacturer in the world. Only Apple, Alphabet, Microsoft, and Amazon have higher market capitalizations in the United States.
Nvidia has become the darling of the Generative AI boom that started with the launch of OpenAI’s ChatGPT in November last year.
Nvidia co-founder Jensen Huang’s wealth surged roughly 23 percent by $6 billion to an approximate $34 billion on Thursday.
Huang’s wealth has risen by 140 percent since the beginning of the year. If the stock surge continues, it will make him the biggest gainer among billionaires globally this year.
Huang, who is well known for his penchant for black leather jackets and a tattoo that mimics the Nvidia logo, co-founded the firm in 1993 and released the first Graphics Processing Unit (GPU) in 1999.
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