Investing.com — Nvidia (NASDAQ:NVDA) is on pace to see its valuation rise above $1 trillion, as a frenzy for artificial intelligence has powered a fresh surge in the chipmaking giant.
In premarket U.S. trading on Tuesday, the stock jumped by as much as 4% to $404.9, giving it a market capitalization of $1 trillion, according to Bloomberg data.
The move would make California-based Nvidia only the ninth company to ever reach the trillion-dollar mark.
Shares were given a further boost on Monday after Chief Executive Jensen Huang unveiled a new supercomputing platform in a bid to take advantage of a recent scramble to harness new AI technology. In a speech in Taiwan, Huang said that a “tipping point” had been reached in computing that will allow “everyone” to become a programmer.
The remarks came after a sharp jump in Nvidia shares over the past week, which made the firm the world’s most valuable semiconductor manufacturer.
The rally was driven in part by a full-year forecast that blew past expectations, which Nvidia linked to rapidly increasing interest in AI development.