Nvidia has AI to thank for entering the $1 trillion club

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Nvidia has AI to thank for entering the $1 trillion club
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Nvidia joined the likes of Apple, Microsoft, and Amazon to become one of a handful of US companies with a trillion-dollar valuation.

Ethan Miller/Getty ImagesIt's one of a handful of US companies, including Apple, Microsoft, and Amazon, to reach that level.Nvidia made it into the $1 trillion club on Tuesday after its share price surged.

Nvidia has artificial intelligence to thank for its rise, as it's a big winner from the ChatGPT mania gripping markets in recent months. Nvidia has a 95% share of the GPU market, per data from New Street Research – so the mad scramble for AI by some of the world's biggest tech companies is expected to lead to a huge surge in demand for its flagship product.

Those results fueled a 24% share-price surge on May 25, adding about $190 billion to its value in a day.Nvidia's AI-driven 174% surge has made it the best-performing stock on the S&P 500 index this year.

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