NVIDIA, a U.S. graphics processing unit (GPU) company, has a market capitalization of nearly $800 billion, signaling listed companies to join the $1 trillion club, called the “dream market capitalization.”
This year, NVIDIA’s stock price rose 124 percent until the 18th. In the third quarter of this year, both sales and net profit exceeded Wall Street’s expectations, continuing to rise. Market expectations are high as the company’s sales forecast for the fourth quarter is $7.4 billion, exceeding the stock market’s expectation ($6.9 billion).
Unlike central processing units (CPUs), GPUs that can process multiple operations at the same time were originally used as graphic output devices for video games, but due to these computational characteristics, applications have been expanded to artificial intelligence (AI) operations, virtual currency mining, data centers, and autonomous vehicles. NVIDIA’s third-quarter sales also accounted for $2.9 billion, up 55% from the same period last year. NVIDIA also said demand for its chips is increasing in artificial intelligence applications (application programs) such as language understanding.
CNBC predicted that NVIDIA was scheduled to be a $1 trillion company in market capitalization next time. Stocks exceeding 1 trillion won in market capitalization were based on Apple’s closing price on the 18th. They include $2.59 trillion), Microsoft ($2.56 trillion), Google’s parent company Alphabet ($2 trillion), Class A ($1.99 trillion), Amazon ($1.87 trillion), and Tesla ($1.1 trillion). If NVIDIA surpasses $1 trillion in market capitalization, it will be the first semiconductor company to cross the threshold.
