Nvidia About to Hit a Trillion-Dollar Market Cap

The artificial intelligence story is fueling a massive rally in tech.

But it’s far from over. In fact, as AI revolutionizes just about every industry out there, it could create a $1.81 trillion opportunity, says Grand View Research.

Look at Nvidia (NVDA), for example – which we spoke about on April 19, noting:

“Nvidia (NVDA) could be one of the biggest winners of 2023. Since the year began, the tech exploded from $140 to $278.44, and we still believe it could hit $300 a share, as we’ve noted. All thanks to the booming AI story. For one, Chief Executive Jensen Huang told analysts that activity around Nvidia’s AI infrastructure “has gone through the roof” since the public debut of Open AI’s ChatGPT, as noted by”

Even with that, we were still shocked by earnings.

Just last night, Nvidia reported revenue of $7.19 billion, down 13% from a year ago but up 19% from the previous quarter. GAAP earnings per diluted share for the quarter were $0.82, up 28% from a year ago and up 44% from the previous quarter. Non-GAAP earnings per diluted share were $1.09, down 20% from a year ago and up 24% from the previous quarter.

“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA. “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process. Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them.”

Of course, the news is also fueling big upside for other AI related stocks, like Advanced Micro Devices (AMD), Micron Technology (MU), SoundHound AI (SOUN), and C3.AI (AI).

NVDA last traded at $374.18, up $68.80 on volume of 34 million in the first 15 minutes of the trading day. By the way, NVDA is about to join the $1 trillion market cap club. Its current market cap is $927.99 billion.