Nvidia Corp. officially joined vaunted company Tuesday, becoming just the seventh public U.S. company to finish a trading session in $1 trillion territory.
The chip giant accomplished something it had failed to do late last month as it officially closed with a market capitalization above $1 trillion. Nvidia shares
NVDA,
previously flirted with intraday levels that would have equated to a $1 trillion valuation but failed to finish a trading session above the mark.
Nvidia’s stock gained 3.9% in Tuesday trading to finish with a market cap of $1.01 trillion. Only Apple Inc.
AAPL,
Amazon.com Inc.
AMZN,
Alphabet Inc.
GOOG,
GOOGL,
Tesla Inc.
TSLA,
Meta Platforms Inc.
META,
and Microsoft Corp.
MSFT,
previously crossed the $1 trillion threshold at the close of a trading day, according to Dow Jones Market Data. Tesla and Meta have since dropped out of the $1 trillion club.
The market-cap milestone comes amid a stunning year-to-date rise for Nvidia shares, which are up 181% over that span amid optimism about the company’s ability to benefit from a growing rush among companies to train and deploy artificial intelligence.
Read: ‘Unprecedented’ and ‘unfathomable.’ Nvidia makes jaws drop on Wall Street as stock explodes higher.
Nvidia is “uniquely positioned with a full-stack of AI silicon, software, scale, supply and developer ecosystem to transform the nearly $1 trillion traditional data-centers market,” BofA Securities analyst Vivek Arya wrote in a late May note to clients.
Don’t miss: Chip stocks ‘have gotten ahead of themselves,’ Citi says — but this ‘top pick’ can thrive
Shares of Nvidia outperformed the PHLX Semiconductor Index
SOX,
in Tuesday’s session, while shares of rival Advanced Micro Devices Inc.
AMD,
ended 3.6% lower in the day’s trading following a series of product announcements. AMD is looking to compete with Nvidia’s Grace Hopper data-center central processing unit with one new offering.
See more: AMD is becoming ‘closest competitor’ to Nvidia in AI hardware, and that could extend stock’s rally
Wallace Witkowski contributed
This post was originally published on Market Watch
