(News Bulletin 247) – The graphics processor maker closed with a market cap of over $1 trillion joining a handful of other stocks.

Nvidia transforms the test. The manufacturer of graphics processors had already crossed the bar of 1,000 billion dollars in market capitalization in session, on May 30. But the American group had not held this valuation throughout the session and had closed under this symbolic mark.

It has now been done since Tuesday evening. Shares in the 1993-founded company ended the session at $410.22, which, according to the wall street journalallowed it to exceed 1000 billion dollars in valuation.

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An increase of 180% in 2023

Since the beginning of the year, the title of the American group has soared by more than 180%, a jump which is largely explained by the rise of generative artificial intelligence, that of conversational robots ChartGPT and Bard.

Nvidia dominates the market for graphics chips essential for generating advanced tasks and applications in artificial intelligence. Microsoft and Google thus equip themselves with thousands or even tens of thousands of Nvidia A100 graphics processors (GPUs) in their data centers to develop and train their chatbots, ChatGPT and Bard, respectively.

The increased use of generative AI translates into more computing power requirements, and therefore greater demand for Nvidia’s products.

This materialized very concretely in the group’s forecasts for its second quarter, Nvidia anticipating revenues of 11 billion dollars for this period, where the company records revenues of 6 to 7 billion dollars in a “normal” quarter. “.

The group’s rise may not be complete. At the end of May, Bank of America raised its price target to 500 dollars, judging that the strength of the group’s activity in generative AI is intended to be sustainable in view of demand.