Nvidia's surge is largely due to the tech industry's demand for its chips, which are used in the development and deployment of large AI models. The company reported Q1 earnings with overall sales of $26 billion, more than triple from a year ago, and expects to report revenue of about $28 billion in the current quarter. Major tech companies like Google, Microsoft, Meta, Amazon, and OpenAI are investing billions in Nvidia's GPUs.
Key takeaways:
- Nvidia shares closed up 5% to $1,224.40 on Wednesday, giving the company a market cap above $3 trillion for the first time.
- Nvidia also passed Apple to become the second-largest public company behind Microsoft.
- Nvidia reported first-quarter earnings that showed demand for the company's pricey and powerful graphics processing units, or GPUs, showed no sign of a slowdown.
- Companies such as Google, Microsoft, Meta, Amazon and OpenAI are buying billions of dollars worth of Nvidia's GPUs.