Nvidia Corp joined an elite club of U.S. companies sporting a $1 trillion market value on Tuesday, as investors piled into the chipmaker that has quickly become one of the biggest winners of the AI boom.
Angelo Zino, analyst at CFRA Research confirmed the development in a statement on Tuesday.
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.
The company claims it creates graphics-processor technologies for workstations, desktop computers, and portable electronic devices.
Since October, Nvidia has increased by over 240%, surpassing every other component of the S&P 500 index for the whole market.
Although the rally has increased its valuation above that of its competitors, some experts believe the company should still be worth more due to the AI growth.
Tuesday saw a 5.7% gain in its stock price.
“We view Nvidia as the most important company on the planet in an era that is rapidly changing towards one that will be emphasized by greater AI capabilities,” said Zino.
Only four other American businesses are presently valued at more than $1 trillion: Amazon.com Alphabet Inc. Microsoft Corp, and Apple Inc.