(Reuters) – Nvidia Corp was on track on Tuesday to cross $1 trillion in market capitalization for the first time, making it the first U.S. chipmaker to join the trillion-dollar club.
Shares of the company last rose 3.5% to $402.91 in premarket trading.
Meta, valued at around $670 billion at the last close, passed the trillion-dollar market capitalization milestone in 2021, while Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com Inc are the other companies Americans who are part of the club.
Artificial intelligence took center stage after Nvidia surprised investors with a revenue forecast last week that beat analysts’ expectations by more than 50%.
Wall Street analysts called Nvidia’s predictions “unfathomable” and “cosmological,” raising their price targets en masse. The highest price target valued the company at around $1.6 trillion, on par with Alphabet, Google’s parent company.
Nvidia shares rose about 25% last week, sparking a rally in AI-related stocks and boosting other chipmakers, helping the Philadelphia SE Semiconductor index close Friday at its highest level ever. more than a year.
The rapid success of OpenAI-owned ChatGPT has prompted tech giants such as Alphabet and Microsoft to make the most of generative AI, which can engage in human-like conversation and create everything, poetry jokes.
(Reporting by Medha Singh and Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)