N.vidia joins the posh club of trillion dollar companies as chip makers benefiting from the growing use of artificial intelligence.
Nvidia Corp. joins tech giants like Alphabet, Apple and Microsoft in the Trillion Dollar Club. The company’s stock climbed 5% in Tuesday’s trading, topping $408 a share. Since its initial public offering in 1999, the stock has risen about 33% annually. By comparison, the benchmark S&P 500 Index over the same period has averaged 7% annual gains.
read more: The metaverse is coming. Nvidia CEO Jensen Huang talks about merging virtual and physical worlds
Last week, the company that makes graphics chips for games and artificial intelligence reported more than $2 billion in quarterly profit and $7 billion in revenue, both of which beat Wall Street expectations.
Industry experts believe Santa Clara, Calif.-based Nvidia could be an early thinker on how AI will reshape the tech sector. The company he founded in 1993, initially he focused on 3D graphics and games. Co-founder Jensen Huang will continue to serve as president and CEO of the company.
AI chips are designed to perform artificial intelligence tasks faster and more efficiently. General-purpose chips like CPUs can also be used for simpler AI tasks, but “are becoming increasingly useless as AI advances,” says a 2020 report from Georgetown University’s Center for Security and Emerging Technologies. said.
Nvidia chips are used in a wide range of applications, from robotics and the metaverse to medical imaging and video analytics.
Other must-reads from TIME
