nvidia became a trillion dollar company
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Khaskhabar.com : Thursday, 01 June 2023 12:07 PM
New York. Growing demand for AI chips has led chipmaker Nvidia to join Wall Street’s elite $1 trillion list. CNN reported that only nine companies in the world have achieved this feat. Currently, apart from Nvidia, only five other companies worldwide – Apple, Microsoft, Alphabet, Amazon and Saudi Aramco – hold this distinction.
Nvidia surprised the stock market last week with its massive profit and extremely strong revenue forecast for the coming year, reports CNN. The recent boom in AI has had a positive impact on the financial results of companies. The company’s shares rose sharply on Wall Street after the results were reported, securing its position as one of the world’s largest publicly traded companies.
Nvidia makes chips that are essential for AI. The announcements of ChatGPT, Google’s Bard, Dull-E and many other new AI technologies have fueled demand for the chips.
Last quarter, the company’s profit rose 26 percent to $2 billion, and sales rose 19 percent to $7.2 billion, CNN reported. In both cases, it outperformed Wall Street analysts’ forecasts. Nvidia’s outlook for the current quarter also significantly exceeded analysts’ predictions (by about 50 percent). Its stock is up nearly 180 per cent so far this year.
Dan Ives, an analyst at Wedbush Securities, said, “Nvidia delivered a stunning performance that will be heard around the world.” This reflects the historic demand for AI now happening in the enterprise and consumer landscape. For investors calling it an AI bubble, we ask them to look to this Nvidia quarterly result, which further solidifies our theory about the AI boom and now talks about the fourth industrial revolution with AI on the doorstep. Is.
Shares of Nvidia need to stay above $404.86 to sustain a $1 trillion market cap. Shares of the company are currently at $408.50, CNN reported.(IANS)
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