[1]Skip to main content
   [2]Exclusive news, data and analytics for financial market
   professionalsLearn more aboutRefinitiv
   [3]Reuters home
     * [4]World (BUTTON)
     * [5]Business (BUTTON)
     * [6]Markets (BUTTON)
     * [7]Sustainability (BUTTON)
     * [8]Legal (BUTTON)
     * [9]Breakingviews
     * [10]Technology (BUTTON)
     * [11]Investigations
     * (BUTTON) More

   (BUTTON) My View
   (BUTTON)
   [12]Register
   (BUTTON)
   (BUTTON)
     *
     *
     *
     *
     *

   (BUTTON)
   (BUTTON)
     * (BUTTON)
     * (BUTTON)
     * (BUTTON)

     * [13]Technology (BUTTON)

Nvidia joins $1 trillion valuation club on booming AI demand

   By [14]Akash Sriram (BUTTON)
   and [15]Samrhitha A (BUTTON)
   May 30, 20236:42 PM UTCUpdated ago
   The logo of NVIDIA as seen at its corporate headquarters in Santa
   Clara, California
   The logo of NVIDIA as seen at its corporate headquarters in Santa
   Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS
   (BUTTON)
     * Summary
     * Companies

   (BUTTON)
     * Nvidia one of five $1 trillion U.S. companies
     * Shares up 240% since October
     * AI propels market gains

   (BUTTON)
     *
     *
     *
     *
     *

   (BUTTON)
   (BUTTON)
     * (BUTTON)
     * (BUTTON)
     * (BUTTON)

   May 30 (Reuters) - Nvidia Corp [16](NVDA.O) 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.

   The stock's value has tripled in less then 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.

   Nvidia has gained roughly 240% since October, far outpacing any other
   member of the broad-market S&P 500 index. The rally has propelled its
   valuation past its peers, but some analysts say the AI boom means the
   stock should still be worth more.

   Its shares were up 5.7% on Tuesday. Just four other U.S. companies
   currently have a valuation of more than $1 trillion - Apple Inc
   [17](AAPL.O), Alphabet Inc [18](GOOGL.O), Microsoft Corp [19](MSFT.O)
   and Amazon.com Inc [20](AMZN.O).

   "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 Angelo Zino, analyst at CFRA Research.

   The latest surge furthers a rally from last week, which was
   jump-started by a [21]revenue forecast that surpassed the mean Wall
   Street estimate by more than 50%, which some analysts called
   "unfathomable" and "cosmological."

   The highest price target values the company at about $1.6 trillion, on
   par with Google-parent Alphabet.

   Nvidia's forward price-to-earnings multiple (P/E), a common benchmark
   for valuing stocks, is 47.49 - is significantly above that of peers
   Qualcomm [22](QCOM.O) and Intel [23](INTC.O) and also tops the sector
   median of 18.09, according to Refinitiv data.

   "While the company's valuation looks lofty at the moment, we think
   Nvidia has the earnings firepower as the adoption of its AI GPU remains
   in the very early innings," Kinngai Chan, senior research analyst at
   Summit Insights Group, said.

GPU CHIPS

   Big Tech companies have shifted focus to AI on hopes the technology
   will attract demand. The computers that power generative AI run on
   powerful chips called graphics processing units (GPUs) - of which 80%
   are produced by Nvidia, according to analysts.

   OpenAI-owned ChatGPT's rapid success has prompted tech giants such as
   Alphabet and Microsoft to make the most of generative AI.

   Nvidia, led by CEO Jensen Huang, has pivoted to the data center market
   over the last few years after years as a powerhouse in videogame chips.

   The company's business rapidly expanded during the pandemic when gaming
   took off, cloud adoption surged and crypto enthusiasts turned to its
   chips for mining coins. Huang's bet on AI is expected to fuel growth in
   the coming months.
   Nvidia breaches $1 trillion market capitalization
   Nvidia breaches $1 trillion market capitalization

   Despite the sky-high valuation, analysts believe Nvidia's AI chips
   business has room for growth as generative AI technology is still at a
   nascent stage with wide adoption expected in the years to come.

   Last week alone, Nvidia's shares rose about 25%, sparking a rally in
   AI-related stocks and boosted other chipmakers. That helped the
   Philadelphia SE Semiconductor index [24](.SOX) close on Friday at its
   highest in over a year.

   "Technical traders and AI mania have pushed Nvidia toward the $1
   trillion cap and it is not inexpensive," said Jim Kelleher, analyst at
   Argus Research.
   Reuters Graphics
   Reuters Graphics
   Reporting by Akash Sriram, Samrhitha Arunasalam Medha Singh and
   Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta and
   Saumyadeb Chakrabarty
   (BUTTON)
     *
     *
     *
     *
     *

   Our Standards: [25]The Thomson Reuters Trust Principles.


   [5b6f19e9-9c72-4833-bac9-599adfc19e72.png]


   [26]Akash Sriram

   Thomson Reuters

   Akash reports on technology companies in the United States, electric
   vehicle companies, and the space industry. His reporting usually
   appears in the Autos & Transportation and Technology sections. He has a
   postgraduate degree in Conflict, Development, and Security from the
   University of Leeds. Akash's interests include music, football
   (soccer), and Formula 1.
     *
     *
     *
     *

Read Next

     * Illustration picture of ChatGPT
       [27]Disruptedcategory[28]Top AI CEOs, experts raise 'risk of
       extinction' from AI2:34 PM UTC
     * Jim Keller, CEO of Canadian AI computing startup Tenstorrent, poses
       for a photo at the company's office in Santa Clara
       [29]Disruptedcategory[30]Canadian AI computing startup Tenstorrent
       and LG partner to build chips1:04 PM UTC
     * Illustration shows NVIDIA logo
       [31]Technologycategory[32]Factbox: Nvidia joins tech titans in
       trillion-dollar club6:23 PM UTC
     * EU Commissioner for Internal Market Thierry Breton looks on during
       a news conference after a visit in an ammunition factory in Nowa
       Deba
       [33]Technologycategory[34]Exclusive: EU's Breton to discuss AI
       rules with OpenAI CEO in June2:10 PM UTC

   [35]Refinitiv Workspace

More from Reuters

[36]Technology

     * NASA looks to spice up astronaut menu with deep space food
       production
       [37]NASA looks to spice up astronaut menu with deep space food
       production[38]Spacecategory · May 29, 2023
       In the 2015 sci-fi film "The Martian," Matt Damon stars as an
       astronaut who survives on a diet of potatoes cultivated in human
       feces while marooned on the Red Planet.
     * A man walks past a logo of Xiaomi, a Chinese manufacturer of
       consumer electronics, outside a shop in Mumbai
       [39]Technologycategory[40]Xiaomi to make wireless audio products in
       IndiaMay 29, 2023
     * Nvidia Corp CEO Jensen Huang speaks at the COMPUTEX forum in Taipei
       [41]Disruptedcategory[42]AI means everyone can now be a programmer,
       Nvidia chief saysMay 29, 2023
     * Nvidia Corp CEO Jensen Huang speaks at the COMPUTEX forum in Taipei
       [43]Disruptedcategory[44]Nvidia, MediaTek partner on connected car
       technologyMay 29, 2023
     * Chinese Commerce Minister Wang Wentao in Beijing
       [45]Technologycategory[46]China urges Japan to halt export
       restrictions on chipsMay 29, 2023

Site Index

Browse

     * [47]World
     * [48]Business
     * [49]Legal
     * [50]Markets
     * [51]Breakingviews
     * [52]Technology
     * [53]Investigations, opens new tab
     * [54]Lifestyle

About Reuters

     * [55]About Reuters, opens new tab
     * [56]Careers, opens new tab
     * [57]Reuters News Agency, opens new tab
     * [58]Brand Attribution Guidelines, opens new tab
     * [59]Reuters Leadership, opens new tab
     * [60]Reuters Fact Check, opens new tab
     * [61]Reuters Diversity Report, opens new tab

Stay Informed

     * [62]Download the App, opens new tab
     * [63]Newsletters, opens new tab

Information you can trust

   Reuters, the news and media division of Thomson Reuters, is the world’s
   largest multimedia news provider, reaching billions of people worldwide
   every day. Reuters provides business, financial, national and
   international news to professionals via desktop terminals, the world's
   media organizations, industry events and directly to consumers.

Follow Us

     *
     *
     *
     *
     *

Thomson Reuters Products

     * [64]Westlaw, opens new tab
       Build the strongest argument relying on authoritative content,
       attorney-editor expertise, and industry defining technology.
     * [65]Onesource, opens new tab
       The most comprehensive solution to manage all your complex and
       ever-expanding tax and compliance needs.
     * [66]Checkpoint, opens new tab
       The industry leader for online information for tax, accounting and
       finance professionals.

Refinitiv Products

     * [67]Refinitiv Workspace, opens new tab
       Access unmatched financial data, news and content in a
       highly-customised workflow experience on desktop, web and mobile.
     * [68]Refinitiv Data Catalogue, opens new tab
       Browse an unrivalled portfolio of real-time and historical market
       data and insights from worldwide sources and experts.
     * [69]Refinitiv World-Check, opens new tab
       Screen for heightened risk individual and entities globally to help
       uncover hidden risks in business relationships and human networks.

     * [70]Advertise With Us, opens new tab
     * [71]Advertising Guidelines, opens new tab
     * [72]Coupons, opens new tab

     * [73]Cookies, opens new tab
     * [74]Terms of Use, opens new tab
     * [75]Privacy, opens new tab
     * [76]Digital Accessibility, opens new tab
     * [77]Corrections, opens new tab
     * [78]Site Feedback, opens new tab

   All quotes delayed a minimum of 15 minutes. [79]See here for a complete
   list of exchanges and delays.

   © 2023 Reuters. [80]All rights reserved

References

   Visible links
   1. https://www.reuters.com/technology/nvidia-sets-eye-1-trillion-market-value-2023-05-30/#main-content
   2. https://www.reuters.com/differentiator/
   3. https://www.reuters.com/
   4. https://www.reuters.com/world/
   5. https://www.reuters.com/business/
   6. https://www.reuters.com/markets/
   7. https://www.reuters.com/sustainability/
   8. https://www.reuters.com/legal/
   9. https://www.reuters.com/breakingviews/
  10. https://www.reuters.com/technology/
  11. https://www.reuters.com/investigates/
  12. https://www.reuters.com/account/register/sign-up/&journeyStart=navigation
  13. https://www.reuters.com/technology/
  14. https://www.reuters.com/authors/akash-sriram/
  15. https://www.reuters.com/authors/samrhitha-a/
  16. https://www.reuters.com/companies/NVDA.O
  17. https://www.reuters.com/companies/AAPL.O
  18. https://www.reuters.com/companies/GOOGL.O
  19. https://www.reuters.com/companies/MSFT.O
  20. https://www.reuters.com/companies/AMZN.O
  21. https://www.reuters.com/technology/nvidia-forecasts-second-quarter-revenue-above-estimates-2023-05-24/
  22. https://www.reuters.com/companies/QCOM.O
  23. https://www.reuters.com/companies/INTC.O
  24. https://www.reuters.com/quote/.SOX
  25. https://www.thomsonreuters.com/en/about-us/trust-principles.html
  26. https://www.reuters.com/authors/akash-sriram/
  27. https://www.reuters.com/technology/disrupted/
  28. https://www.reuters.com/technology/top-ai-ceos-experts-raise-risk-extinction-ai-2023-05-30/
  29. https://www.reuters.com/technology/disrupted/
  30. https://www.reuters.com/technology/canadian-ai-computing-startup-tenstorrent-lg-partner-build-chips-2023-05-30/
  31. https://www.reuters.com/technology/
  32. https://www.reuters.com/technology/nvidia-joins-tech-titans-trillion-dollar-club-2023-05-30/
  33. https://www.reuters.com/technology/
  34. https://www.reuters.com/technology/eus-breton-meet-openai-ceo-san-francisco-june-eu-officials-say-2023-05-30/
  35. https://www.refinitiv.com/en/products/refinitiv-workspace
  36. https://www.reuters.com/technology/
  37. https://www.reuters.com/technology/space/nasa-looks-spice-up-astronaut-menu-with-deep-space-food-production-2023-05-29/
  38. https://www.reuters.com/technology/space/
  39. https://www.reuters.com/technology/
  40. https://www.reuters.com/technology/xiaomi-make-wireless-audio-products-india-2023-05-29/
  41. https://www.reuters.com/technology/disrupted/
  42. https://www.reuters.com/technology/ai-means-everyone-can-now-be-programmer-nvidia-chief-says-2023-05-29/
  43. https://www.reuters.com/technology/disrupted/
  44. https://www.reuters.com/technology/nvidia-mediatek-partner-connected-car-technology-2023-05-29/
  45. https://www.reuters.com/technology/
  46. https://www.reuters.com/technology/china-urges-japan-correct-its-wrongdoing-imposing-chip-export-controls-2023-05-29/
  47. https://www.reuters.com/world/
  48. https://www.reuters.com/business/
  49. https://www.reuters.com/legal/
  50. https://www.reuters.com/markets/
  51. https://www.reuters.com/breakingviews/
  52. https://www.reuters.com/technology/
  53. https://www.reuters.com/investigates/
  54. https://www.reuters.com/lifestyle/
  55. https://www.reutersagency.com/en/about/about-us/
  56. https://www.thomsonreuters.com/en/careers.html
  57. https://www.reutersagency.com/en/?utm_source=website&utm_medium=reuters&utm_campaign=site-referral&utm_content=us&utm_term=0
  58. https://www.reutersagency.com/en/about/about-us/brand-attribution-guidelines/
  59. https://www.reutersagency.com/en/about/leadership-team/
  60. https://www.reuters.com/fact-check/
  61. https://www.reuters.com/media-campaign/diversity_report/DiversityReport2022.pdf
  62. https://www.reuters.com/tools/mobile/us
  63. https://reuters.com/newsletters/
  64. https://legal.thomsonreuters.com/en/products/westlaw
  65. https://tax.thomsonreuters.com/en/onesource
  66. https://tax.thomsonreuters.com/en/checkpoint
  67. https://www.refinitiv.com/en/products/refinitiv-workspace
  68. https://www.refinitiv.com/en/financial-data
  69. https://www.refinitiv.com/en/products/world-check-kyc-screening
  70. https://www.reutersagency.com/en/services/advertising-solutions/
  71. https://www.reuters.com/info-pages/advertising-guidelines/
  72. https://www.reuters.com/coupons/
  73. https://www.thomsonreuters.com/en/privacy-statement.html#cookies
  74. https://www.reuters.com/info-pages/terms-of-use/
  75. https://www.thomsonreuters.com/en/privacy-statement.html
  76. https://www.thomsonreuters.com/en/policies/digital-accessibility-policy.html
  77. https://www.reuters.com/info-pages/contact-us/
  78. https://trdigital.iad1.qualtrics.com/jfe/form/SV_8kte8gArGyCGVhz
  79. https://www.reuters.com/info-pages/disclaimer/
  80. https://www.thomsonreuters.com/en/policies/copyright.html

   Hidden links:
  82. https://www.reuters.com/authors/akash-sriram/
  83. mailto:Akash.Sriram@thomsonreuters.com
  84. https://twitter.com/hoodieonveshti
  85. https://www.reuters.com/technology/nvidia-sets-eye-1-trillion-market-value-2023-05-30/hoodieonveshti
  86. https://www.linkedin.com/in/akashsriram/
  87. https://www.reuters.com/technology/top-ai-ceos-experts-raise-risk-extinction-ai-2023-05-30/
  88. https://www.reuters.com/technology/canadian-ai-computing-startup-tenstorrent-lg-partner-build-chips-2023-05-30/
  89. https://www.reuters.com/technology/nvidia-joins-tech-titans-trillion-dollar-club-2023-05-30/
  90. https://www.reuters.com/technology/eus-breton-meet-openai-ceo-san-francisco-june-eu-officials-say-2023-05-30/
  91. https://www.reuters.com/technology/space/nasa-looks-spice-up-astronaut-menu-with-deep-space-food-production-2023-05-29/
  92. https://www.reuters.com/technology/xiaomi-make-wireless-audio-products-india-2023-05-29/
  93. https://www.reuters.com/technology/ai-means-everyone-can-now-be-programmer-nvidia-chief-says-2023-05-29/
  94. https://www.reuters.com/technology/nvidia-mediatek-partner-connected-car-technology-2023-05-29/
  95. https://www.reuters.com/technology/china-urges-japan-correct-its-wrongdoing-imposing-chip-export-controls-2023-05-29/
  96. https://www.twitter.com/Reuters
  97. https://www.facebook.com/Reuters
  98. https://www.instagram.com/Reuters
  99. https://www.youtube.com/user/ReutersVideo
 100. https://www.linkedin.com/company/10256858/