Nvidia Share Price Hits Lifetime High, Chipmaker's Market Cap Surpasses $4.5 Trillion Mark

Nvidia Market Cap: The Jensen Huang led tech major Nvidia's share price hit a fresh lifetime high, after rising nearly 3 per cent, making the California-based chipmaker the first company to boast of a market valuation beyond $4.5 trillion.

In trade on Tuesday September 30, Nvidia share price closed at $186.58, 2.6 per cent higher from the previous day

In May 2023, the tech giant crossed a valuation of $1 trillion, surpassed $2 trillion in February 2024, reached $3 trillion in June 2024, hit $4 trillion in July, and has now become the first to hit $4.5 trillion.

The shares have gained about 39 per cent so far this year as a result of rising investor interest in the firm's dominance in the artificial intelligence sector.

What Triggered Nvidia's Tuesday Rally?

In the previous week, Sam Altman led OpenAI informed that Nvidia would take stake worth up to $100 billion in the ChatGPT developer and infuse funds in building massive data centers powered by its GPUs.

In partnership with Oracle, OpenAI also announced five large-scale data centers, expected to house hundreds of thousands of Nvidia chips, under its $500 billion “Stargate” project.

Nvidia's CEO Jensen Huang said the company's products account for roughly 70 per cent of the capital spent on constructing new AI data centers.

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On the other hand, big players such as Google, Meta and several tech giants are also significantly increasing their AI infrastructure investments.

Recently, CoreWeave, a cloud provider partly owned by Nvidia, declared that it has inked a $14.2 billion agreement to deliver AI infrastructure services to Meta.