Nvidia joins trillion-dollar club as market cap hits $1 trillion milestone

Nvidia, a well-known chip maker, reached a significant milestone as its market capitalization crossed the $1 trillion mark on Tuesday, putting the company in an exclusive group dominated by tech giants.

To maintain this achievement, Nvidia stock must remain above $404.86 throughout the day.

At the morning trading, the shares of the company noticeably increased by almost 6%, which further increased its market value. Nvidia stock surged last week after the company reported quarterly earnings that exceeded revenue and profit expectations.

Nvidia forecast $11 billion in sales for the second quarter of fiscal 2024 alone. The expected sales were 50% higher than consensus estimates of $7.15 billion.

The past year has been exceptional for chipmakers, as well as various sectors within the tech industry. This surge can be attributed to factors such as the widespread interest in artificial intelligence. Nvidia's graphics processing units (GPUs) play a vital role in generative AI platforms like OpenAI's ChatGPT and Google's Bard.