Nvidia became a $1 trillion company thanks to the AI ​​boom

Nvidia temporarily became a $1 trillion company on Tuesday morning, with rising valuations driven by tech companies big and small scrambling to add generative artificial intelligence tools to their products. AI tools made up the bulk of recent Google I/O and Microsoft Build presentations, and Nvidia̵[ads1]7;s chips make it a key supplier for companies trying to build something with AI.

The valuation pushed past the trillion-dollar benchmark when trading opened today at just over $405 a share, putting it in the thin air previously occupied by just a few big companies like Apple and Microsoft after they surpassed that significant value in August 2018 and August 2019, respectively. Amazon and Google are the other tech stocks in the club, and Meta is a former member.

By the time the market closed on Monday, the stock had fallen back to $401.11 after reaching a high of around $419. That gives Nvidia’s stock a value of “only” $992 billion or so, taking it out of the $1 trillion club, for now.

Update May 30, 7:39 PM ET: Updated to reflect NVDA’s closing price.