Nvidia Becomes First $1 Trillion Chipmaker on AI Boom

Nvidia joined the trillion-dollar club on May 30, 2023, becoming the first chip company in history to reach a $1 trillion market value as investors raced into the stock at the center of the generative-AI boom. The valuation milestone came less than a week after Nvidia forecast quarterly revenue of about $11 billion — more than 50 percent above Wall Street estimates — driven by demand for its H100 and A100 accelerators that power ChatGPT and other AI systems.

"This is basically a rebirth, a reinvention of computing as we know it," said CEO Jensen Huang, who had described AI adoption as reaching its "iPhone moment." The stock had roughly tripled in under eight months, outpacing every other member of the S&P 500. Nvidia's data-center business posted a record $4.28 billion in quarterly revenue as cloud providers and large internet companies rushed to build AI capacity; OpenAI's ChatGPT alone was reported to run on more than 20,000 Nvidia GPUs.

The milestone marked a stunning pivot for a company long known mainly for gaming graphics: Nvidia now produces an estimated 80 percent of the world's GPUs for AI workloads, and its chips form the backbone of the AI infrastructure built by Microsoft, Alphabet, Amazon and Meta. The company's rise signaled the beginning of an AI-driven supercycle for the semiconductor industry.

Source: Reuters, May 30, 2023; CBS News. Reference: Nvidia reaches $1 trillion market value — CBS News