Market Insight – Nvidia Stock Price Surges

Nvidia’s stock jumped as much as post and pre-market trading due to bullish optimism over the A.I driven technology that the company has been rolling out.

It is notable that Nvidia Corp. is poised to become the world’s first chipmaker with a $1 trillion market capitalization, joining an exclusive club of American companies with a valuation that high.

Should the company hit the $1 trillion benchmark level it will join a handful of companies including Alphabet Inc., Amazon.com Inc., Apple Inc. and Microsoft Corp.

Over the weekend, Nvidia Chief Executive Officer Jensen Huang announced several artificial intelligence-related products, touching on everything from robotics to gaming to advertising and networking.

His company AI supercomputer platform has technology that will help tech companies create their own versions of ChatGPT.

Nvidia is the biggest maker of the kinds of specialized chips that power a new generation of AI products, alongside rivals such as Advanced Micro Devices Inc. and Intel Corp.

Last week, the company issued an AI-fuelled sales forecast of $11 billion in the fiscal second quarter, blowing analyst targets out of the water and growing its value by $184 billion in a single day.

Nvidia was co-founded in 1993 by Huang. It proved more successful than its peers at developing chips that turn computer code into the realistic images that computer gamers love and rode out a wave of consolidation that saw its rivals acquired, bankrupted or merged into larger companies.

In less than a decade, Nvidia’s data centre business has grown from $300 million in annual revenue to $15 billion. The chipmaker has won orders to equip giant computing factories by successfully arguing that graphics chips can handle AI workloads better than more standard processors.