Nvidia, the Californian artificial intelligence and chip company, achieved a major milestone on Tuesday by becoming the first chip maker ever to be valued at $1 trillion, as reported by Reuters. The company’s stock has seen an increase of 4.4% in Tuesday morning trading and 25% over the last week, all thanks to the high demand for AI. Nvidia is the mastermind behind “the most advanced chips, systems, and software” for AI. The company’s stocks are now worth around $408. However, some experts suggest that the company may be overvalued, according to Forbes.
Last week, Nvidia predicted that their second-quarter revenue would exceed Wall Street expectations by over 50%, leading to an increase in analysts’ price targets, according to Reuters. The company has increased its production of chips that are used in innovative products such as ChatGPT, an AI bot that accurately answers questions and performs tasks.
In an interview with Reuters, Nvidia CEO Jensen Huang explained that the company started producing new AI chips in August, and the rising popularity of AI tech led to a significant increase in demand by January. “We had to place additional orders, and we procured substantially more supply for the second half” of 2023, Huang said.
Nvidia has now joined the ranks of tech giants such as Google, Apple, and Microsoft, becoming the sixth highest-valued public company, according to Forbes. Apple currently tops the list at an estimated value of $2.79 trillion. However, on CBS News’ “Face the Nation” on Sunday, President and Vice Chair of Microsoft Brad Smith, expressed his expectancy for the U.S. government to regulate AI in the year ahead.
While some tech executives, including Elon Musk, have urged for the regulation of AI, not everyone is in agreement. During a hearing for the Senate Judiciary’s Subcommittee on Privacy, Technology, and the Law, Sam Altman, the CEO of the company behind ChatGPT, warned of the potential severe consequences of AI going wrong. “If this technology goes wrong, it can go quite wrong,” he said. “We want to be vocal about that. We want to work with the government to prevent that happening. But we have to be clear-eyed about it.”
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