NVIDIA joins Apple, Alphabet, and Microsoft in the prestigious upper tier of billion-dollar technology companies.
NVIDIA (NDVA) surpassed a market capitalization of $1 trillion, increasing the company’s total value close to that of all cryptocurrencies combined.
Tuesday’s opening price for the company’s stock was $405.96; by 9:50 a.m. ET, it had risen to $416.39. The 6% increase represented the 52-week peak for the company.
As of 12:47 p.m. E.T., shares have dropped to $402.53 per share, bringing them marginally below the $404.86 level required to maintain a $1 trillion market cap.
The chipmaker’s stock began surging last week following the release of quarterly earnings results that were well above consensus estimates, boosting the performance of other companies in the industry.
Intel (INTC) rose by 3.17 percent on the day, despite initially falling when the market opened.
NVIDIA and Intel have both contributed to developing specialized computer hardware required to mine cryptocurrencies in the most cost-effective manner.
In September, Chinese suppliers of NVIDIA-built graphical processing units (GPUs) were forced to substantially reduce their prices in response to the Ethereum Merge, which rendered Ethereum’s GPU mining industry obsolete.
Although many former Ethereum miners have repurposed their GPUs to mine other cryptocurrencies, such as Ethereum Classic (ETC), the profitability of these networks is typically much lower.
In 2023, chipmakers rebounded due to the Federal Reserve’s decision to slow its interest rate increases.
They have also benefited from the Artificial-Intelligence frenzy that has gripped investors due to programs such as OpenAI’s ChatGPT and Google’s Bard, which require powerful GPUs.
