Nvidia joins the $1 trillion market value club
Nvidia shares have skyrocketed this year, up more than 175% since the start of 2023. It's all thanks to the rise of generative AI. Really powerful chips called graphics processing units (GPUs) are needed to power these new AI systems. These are the kinds of GPUs Nvidia makes.
Despite it's rise, Nvidia does have its detractors. ARK Invest's (ARKK) Cathie Wood explained why her firm sold their Nvidia shares back in January, saying the stock was overpriced.
Nvidia's strong performance has sent the its stock not just to new highs, but granted it entry to an exclusive club: the stocks that have a market cap of $1 trillion plus. Nvidia (NVDA) joins such tech giants as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN) in the club. Apple was the first member, surpassing the $1 trillion mark in August 2018. Former members of the club include Meta (META) and Tesla (TSLA), which now have market caps of $600 billion+.
Yahoo Finance's Brad Smith tells Seana Smith and Akiko Fujita how it took Nvidia about 24 years to become a $1 trillion company and how that compares to other members' rise.
Key video moments:
00:00:20 $1 Trillion club members
00:00:44 How Nvidia compares to other $1T members
00:01:35 How AI boosted Nvidia shares
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