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AI Chip Firm Nvidia Valued At $2tn
Nvidia’s market value has reached $2 trillion (£1.58 trillion), marking a new milestone in the chipmaker’s meteoric rise to the ranks of the world’s most valuable corporations.
Shares of the Silicon Valley corporation gained more than 4% in opening trading on Friday before falling slightly.
The gains built on the company’s impressive earnings announcement earlier this week.
AI Chip Firm Nvidia Valued At $2tn
The company is profiting from improvements in artificial intelligence (AI), which has boosted demand for its processors.
The company’s turnover doubled last year to more than $60 billion, and CEO Jensen Huang told investors this week that demand was “surging” worldwide.
The corporation, which became worth $1 trillion less than a year ago, is now the world’s fourth most valuable publicly traded company, trailing Microsoft, Apple, and Saudi Aramco.
AI Chip Firm Nvidia Valued At $2tn
After shares fell from their early Friday highs, the company’s market capitalization ended the day just under $2 trillion.
Nvidia was founded in 1993 and was originally recognized for producing computer processors that processed images, primarily for computer games.
Long before the AI revolution, it began adding capabilities to its chips that it claims to aid in machine learning, which has helped it acquire market dominance.
It is currently regarded as a vital company to monitor how quickly AI-powered technology spreads throughout the commercial world.
The firm’s stock price has more than tripled the previous year, from less than $240 per share to about $800 in midday trading on Friday.
On Thursday, the day after its earnings release, purchasers snapped up shares, boosting its value by $277 billion, the greatest one-day rise in Wall Street history.
He research has also contributed to a larger market rise, appearing to persuade investors that, as Derren Nathan of Hargreaves Lansdown put it, the AI boom is “living up to the hype”.
AI Chip Firm Nvidia Valued At $2tn
“It’s being used in automotive for design, in telecommunications for network planning, and in mainstream companies to figure out and get insights into data that they haven’t been able to get before,” Bob
O’Donnell, a technology analyst based in the United States, told the BBC earlier this week.
“This is now really starting to hit the kinds of companies across the board, not just specialized tech companies and that’s a real tipping point for the industry.”
SOURCE – (BBC)
