Nvidia on Tuesday became the first semiconductor company to reach a market value of $1 trillion. NVDA stock jumped on the company's latest artificial intelligence and supercomputer announcements, made at the Computex trade show in Taiwan.
In morning trades on the stock market today, NVDA stock surged 7.7% to a record high 419.38, giving it a market capitalization of more than $1.01 trillion. However, it ended the regular session up 3% to 401.11 for a valuation of $991 billion.
Year to date, Nvidia shares are up more than 174%.
With its move higher, Nvidia briefly joined tech giants Alphabet, Apple, Amazon and Microsoft in passing the trillion-dollar valuation milestone.
Nvidia Chief Executive Jensen Huang gave a keynote speech at Computex on Monday. In his presentation, he announced new computer systems, software and services designed for generative AI.
Generative AI can create content, including written articles, images, videos and music, from simple descriptive phrases. Artificial intelligence systems analyze and digest vast amounts of data to create new works. Generative AI also can create computer programming code.
NVDA Stock Continues Steep Ascent
Nvidia stock rocketed last week after the AI chipmaker smashed estimates for its fiscal first quarter and surprised Wall Street with a super-bullish forecast.
At Computex, Huang described accelerated computing systems, software and services that are enabling new business models and making current ones more efficient.
"Accelerated computing and AI mark a reinvention of computing," Huang said. "We're now at the tipping point of a new computing era with accelerated computing and AI that's been embraced by almost every computing and cloud company in the world."
At the show, Huang unveiled the DGX GH200, a large-memory AI supercomputer. The system uses Nvidia NVLink to combine up to 256 Nvidia GH200 Grace Hopper Superchips into a single data-center-size graphics processing unit, or GPU. The DGX GH200 packs an exaflop of performance and 144 terabytes of shared memory.
Google Cloud, Meta Platforms and Microsoft are among the first expected to gain access to the DGX GH200, Nvidia said.
The DGX GH200 has a price tag north of $10 million, Morgan Stanley analyst Joseph Moore said in a note to clients. He rates NVDA stock as overweight, or buy.
Nvidia Is On Two IBD Stock Lists
Meanwhile, Nvidia is building its own massive AI supercomputer, Nvidia Helios, coming online this year. It will use four DGX GH200 systems linked with Nvidia Quantum-2 InfiniBand networking to supercharge data throughput for training large AI models.
Huang's keynote speech showcased Nvidia's deepening enterprise strategy, Wells Fargo analyst Aaron Rakers said in a note to clients.
For instance, the launch of Nvidia's Spectrum-X Ethernet switches will help the company grab more business in data center networking. The new product line likely will heighten competition with Arista Networks and Cisco Systems, Rakers said.
Rakers reiterated his overweight rating on NVDA stock with a price target of 450.
NVDA stock is on the IBD Leaderboard and Tech Leaders stock lists.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
