Per Reuters

NVIDIA is one of the companies greatly benefiting from the surge in AI. The company has become the first chipmaker ever to hit a $1 trillion market value.

This comes as the company experienced an increased demand for AI chips as industries are trying to invest heavily in AI and other related services. To place this into perspective, the second largest chipmaker had a market value of just around half of NVIDIA's.

Taiwan Semiconductor Manufacturing Co Ltd., the chipmaker with the second-largest market value, sat at just $535 billion. The new market value of NVIDIA also gets it closer to Google-parent Alphabet, currently sitting at $1.6 trillion

Summit Insights Group's senior research analyst Kinngai Chan, gave a statement regarding the company's valuation. Per the analyst, they thought that the company had "earnings firepower" with its involvement in AI.

Chan: "While the company's valuation looks lofty at the moment, we think Nvidia has the earnings firepower as the adoption of its AI GPU remains in the very early innings,"

Other analysts like Jim Kelleher of Argus Research have also shared their thoughts on NVIDIA reaching new heights amid the boom of AI.

Kelleher: "Technical traders and AI mania have pushed Nvidia toward the $1 trillion cap and it is not inexpensive,"

Recently, the CEO of NVIDIA shared how he believes that AI means that everyone that wants to become a computer programmer can become one. The CEO, Jensen Huang, said all that needed to be done was for people to speak to a computer to get codes.

This comes as ChatGPT allows users to ask for codes that they can simply copy and paste instead of having to write from scratch. Despite this, Goldman Sachs still says to be cautious about AI investments, saying that the stocks that were most likely to benefit were Meta, Alphabet, Google, Microsoft, and Amazon.

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Reuters