Nvidia hits $3 trillion market cap on back of AI boom
Summary
Nvidia briefly surpassed $3 trillion in market cap during intraday trading on Wednesday as investors continue to clamor for the company making most of the chips powering the AI boom. Nvidias milestone is the latest stunning mark in a run where the stock price has gone parabolic as investors bet on artificial intelligence. In May, Nvidia reported first-quarter earnings that suggested demand for the companys pricey and powerful AI chips, often called GPUs, showed no sign of slowing down. Nvidia shares have surged in recent years, powered by the tech industrys need for its chips, which are used to develop and deploy big artificial intelligence models like the one at the heart of OpenAIs ChatGPT. Companies such as Google, Microsoft, Meta, Amazon and OpenAI are buying billions of dollars of Nvidias graphics processing units.
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