Nvidia became a $1 trillion company thanks to the AI boom

Nvidia temporarily became a $1 trillion company on Tuesday morning, with its rising valuation fueled by tech companies big and small racing to add generative artificial intelligence tools to their products. AI tools made up the vast bulk of recent Google I/O and Microsoft Build presentations, and Nvidia’s chips make it a key supplier for companies trying to build something with AI.

Its valuation pushed past the trillion-dollar benchmark as trading opened today at just over $405 per share, putting it in the rarified air previously occupied by only a few large companies such as Apple and Microsoft after they surpassed the significant mark in August 2018 and August 2019, respectively. Amazon and Google are the other tech stocks in the club, and Meta is a former member.

When the market closed on Monday, the share price had fallen back to $401.11 after peaking at about $419. That gives Nvidia’s stock a value of “just” $992 billion or so, taking it out of the $1 trillion club, for now.

Update May 30th, 7:39PM ET: Updated to reflect NVDA’s closing price.