AI chipmaker Nvidia joins tech giants to hit $1 trillion | business news


A company that makes artificial intelligence (AI) microchips is the first $1 trillion chipmaker.

Nvidia joins the ranks of tech giants worth a staggering amount, including Amazon, Apple, Microsoft and Google parent Alphabet, as investors expect the company to capitalize on the AI ​​revolution.

It manufactures chips that are crucial for AI technologies such as ChatGPT generative AI chatbot and on Monday launched a new line of AI products including a supercomputer platform.

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A leading group of AI developers has warned that artificial intelligence poses a similar threat to human existence as nuclear war or a global pandemic

Following that announcement, Nvidia’s share price rose to $408.13 (£328.85) as of Tuesday afternoon, taking the company’s total value to the $1 trillion mark for the first time.

The company suffered from supply chain issues but managed to overcome them and the stock price rose steadily. Over the course of 2023, Nvidia shares are up 180%.

Last week, investors and analysts were heartened by Nvidia’s revenue forecasts, which the company said will reach $11 billion (£8.86 billion) in the three months to July. That’s a 50% increase over analysts’ expectations.

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Nvidia is now more valuable than other chipmakers like Intel and tech giant Meta.

Company founder and current CEO Jensen Huang founded Nvidia in 1993 at the age of 30. He is only the second CEO in US history who is still at the helm of a company to reach this milestone, after Amazon founder and former CEO Jeff Bezos.

In 2022, Nvidia had attempted to buy British chipmaker Arm for $40 billion (£32.22 billion), but the deal was abandoned after it fell through regulatory pressure in both the UK and the US.

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