Nvidia Corp. is poised to become the first American chipmaker to surpass a market capitalization of $1 trillion, as its shares were last up 3.5% to $402.91 in Tuesday’s premarket trading.
Meta, valued at roughly $670 billion as of the most recent close, achieved a trillion-dollar market capitalization in 2021, joining Apple Inc, Alphabet Inc, Microsoft Corp, and Amazon.com Inc as the only other U.S. companies in the trillion-dollar club.
After releasing its first quarter earnings for fiscal 2024, Nvidia’s stock soared almost 25% last week, fueling a rise in AI-related equities and boosting rival chipmakers.
Analysts on Wall Street referred to Nvidia’s forecast as “unfathomable” and “cosmological” and consequently raised their price targets in droves. The most optimistic valuation put the firm’s market cap at $1.6 trillion, making it roughly on level with Alphabet, the parent company of Google.
