The chipmaker saw its shares surge 27% on Thursday, bringing its market value to just under the $1 trillion mark at about $974 billion. It was $755 billion at Wednesday’s close.
Shares in Nvidia rose 23% on Thursday morning in New York after its sales forecast came in more than 50% ahead of Wall Street's previous estimates.
Nvidia added some $170bn to its market value following Wednesday's quarterly report. That is more than the entire value of Intel or Qualcomm and the biggest one-day gain ever for a US stock, according to figures from Bloomberg.
The surge in Nvidia shares was bolstered by the chipmaker's claim to be the only company whose tech is capable of meeting demand from across the industry to build generative AI, systems capable of creating human-like content.
The company said it was raising production of its chips to meet surging demand.
Nvidia’s latest flagship AI Chip — H100, succeeding the A100 chip, is about a $10,000 chip that’s been called the “workhorse” for AI applications.
This H100 AI chip is being used by developers to build large language models (LLMs), which are at the heart of AI applications like OpenAI’s ChatGPT. Running these systems is expensive and requires powerful computers to churn through terabytes of data for days or weeks at a time. They also rely on hefty computing power so the AI model can generate text, images or predictions.
In March this year, the company introduced NVIDIA AI Foundations to help businesses create and operate custom large language models and generative AI models trained with their own proprietary data for domain-specific tasks.
“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA, in a company press release.
“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.
“Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them,” he said.
During the first quarter of fiscal 2024, NVIDIA returned to shareholders $99 million in cash dividends.
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