Nvidia Rally Continues, Joins the $1 Trillion Club
Nvidia (NVDA:US) shares have continued to rally, now up over 170% year-to-date. The chipmaker saw its stock add about 5% on Tuesday, becoming the ninth company ever to top $1 trillion market value.
The rapid surge in interest for stocks that have exposure to artificial intelligence (AI) has prompted another wave of buying despite the fact that Nvidia shares have already vastly outperformed the market in 2023.
A new boost came on Monday when the CEO Jensen Huang presented a new supercomputing platform.
Gilad Shainer, a senior vice president at Nvidia, said AI is the "most important technology in our lifetime".
"Generative AI is going everywhere nowadays. You need to be able to run training on large datasets," he told Reuters after Nvidia said it will build an Israeli supercomputer.
Shares of the company initially soared after the new guidance for this quarter crushed analyst estimates. While the Street was looking for $7.13 billion in Q2 sales, Nvidia said it expects revenue to be about $11 billion given the red-hot demand for high-end chips that power generative AI applications.
In the meantime, the interest in Nvidia stock among Congress members also remains strong. Representatives, Kathy Manning, Daniel Goldman, Josh Gottheimer, Jonathan Jackson, Morgan McGarvey, and Ro Khanna were all buying shares in the chipmaker this year.
Earlier in May, Rep. Jackson disclosed he spent $15,000 - $50,000 on Nvidia shares on April 14 when the stock closed at $267.58.
Nvidia shares were trading at around $410 apiece on Tuesday.
