Nvidia briefly joins the $1 trillion club
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Chipmaker Nvidia's AI-fueled stock surge has pushed it into elite ranks of Corporate America: Companies with trillion-dollar-plus valuations.
Driving the news: Nvidia's market cap briefly topped $1 trillion on Tuesday, before settling at around $990 billion — with a 3% gain on the day — at the close of trading.
- Apple, Microsoft, Alphabet, and Amazon are the only companies currently sporting a market-based total price tag with 13 figures.
Flashback: Apple was the first member of the club, cracking the $1 trillion level in 2018.
Context: The swirl of excitement and hype around AI has made Nvidia — whose chips are used in the technology's development — the top-performing stock in the S&P 500 this year with an increase of about 175%.
- That rise came off a pretty big base, since the company was valued at fairly massive $360 billion at the end of 2022.
- The increase catapulted the company's value past some of America's largest blue chip corporations, including Exxon Mobil, Berkshire Hathaway and tech behemoths like Meta and Tesla.
The bottom line: The rise in the shares this year has created upwards of $600 billion in paper gains for investors. Not too shabby.
