NVIDIA becomes first company to hit $5 trillion market value
What's the story
NVIDIA has made history by becoming the first company ever to reach a market capitalization of $5 trillion. The chipmaker's valuation was around $5.08 trillion, surpassing tech giants like Alphabet ($4.1 trillion) and Apple ($3.97 trillion). Microsoft and Amazon were next on the list with valuations of $3.13 trillion and $2.82 trillion, respectively.
Market surge
NVIDIA's stock surges to record high
NVIDIA's stock was trading at around $209.7, up 5.04% on the day after hitting an intraday high of $210.95. This surge pushed NVIDIA's valuation to over $5.1 trillion. The company's success is largely due to its position as a leading supplier of graphics processing units (GPUs), which are extensively used in training and running artificial intelligence models.
Information
From gaming GPUs to AI powerhouse
NVIDIA started out making GPUs for video games and graphics-heavy applications. In the 1990s, it launched several series of graphics processors that earned the company rave reviews. This success also helped NVIDIA land a contract to build hardware for Microsoft's gaming console, Xbox.
Market impact
Semiconductor industry on the rise
NVIDIA's stock has surged 12% this year, contributing to nearly 20% of the S&P 500's growth. The entire semiconductor industry is also thriving, with the Philadelphia Semiconductor Index rising for a record 18th consecutive session, up an impressive 47%. Major players like Texas Instruments and Intel are also reporting strong earnings.