Nvidia hits $1 trillion in market value

STORY: A milestone day for Nvidia.

Tuesday the company became the first chipmaker to reach a trillion dollars in market value.

It joins an exclusive club with members including Apple, Google-parent Alphabet and Microsoft and Amazon.

Nvidia is benefitting from the surge in demand for chips for artificial intelligence applications including for chatbot sensation ChatGPT. Last week it stunned investors with a revenue forecast that surpassed analysts’ expectations by more than 50 percent. Wall Street analysts called Nvidia's outlook "unfathomable" and "cosmological," hiking their price targets in droves.

The highest price target valued the company at about $1.6 trillion, on par with Google-parent Alphabet.

Other analysts though say they expect shares to remain volatile because of the pressure on the company to deliver on its high growth expectations.

The stock rose 25 percent after Nvidia released its forecast. It is up another 5-percent in late morning trading and has nearly tripled in value in 2023.