The stock rose 4.3 per cent in New York trading on Tuesday, gaining a market cap of $1.02 trillion and joining the likes of Alphabet Inc., Amazon.com Inc., Apple Inc. and Microsoft Corp. in trillion-dollar valuations. Fewer than 10 companies globally have ever achieved this level.
Huang’s urgency — and his willingness to take risks that other rule-by-committee businesses dare not — is what compelled Nvidia Corp., the Silicon Valley chipmaker he founded 30 years ago, to make big bets on artificial intelligence years before anyone else was taking it seriously. Today, it’s proving to be the company’s golden goose.
Not everyone is bullish. In an interview on Bloomberg TV on Friday, Cathie Wood, whose flagship ARK Innovation ETF fund cut its holding in Nvidia in January, warned that the computer-chip industry’s boom-bust cycles pose risks. “There are a few reasons we take some pause,” she said, with competition growing among firms for a piece of the AI market. She called Nvidia a “a check-the-box stock.”
“We have never seen a guide like the one Nvidia just put up,” Sanford C. Bernstein analyst Stacy Rasgon said at the time.