one year on
Nvidia joins $1 trillion market cap club after blockbuster earnings forecast
The chipmaker's shares surged 6% on Tuesday, pushing its valuation past the trillion-dollar mark for the first time and making it the seventh U.S. company to cross that threshold, driven by demand tied to A.I.
Nvidia crossed the $1 trillion market cap milestone on Tuesday, capping a three-day rally that added $265 billion in valuation, which Fortune says would rank as the largest three consecutive trading-day valuation increase in U.S. capital markets history if the May 30 gains hold to the close.
The chipmaker’s stock rose 6% in morning trading, lifting its market cap to roughly $1.012 trillion. The surge follows last week’s blockbuster earnings report, which included a 50% revenue growth forecast for the current quarter, driven by demand tied to A.I.
Nvidia joins an exclusive club with only four other current members: Apple, Microsoft, Google, and Amazon. Only three, Apple, Microsoft, and Google, have proven reliable, long-term club mates. After joining in 2018, Amazon dropped out for several months starting in November 2022, then rejoined in mid-March 2023. Two other tech giants were short-termers: Meta Platforms gained admittance for only a month or so in August and September 2021, and Tesla crossed the threshold in November 2022, only to exit for good the following April.
Fortune’s Shawn Tully cautioned that Nvidia’s P/E ratio above 70 means the company would need to grow current earnings by 26% a year over the next decade and make $125 billion by 2033 just to deliver a 10% annual return. He compared Nvidia’s moonshot to Tesla’s earlier run and said Tesla later tumbled out of the club.
The record
The publication noted Nvidia's three-day gain of $265 billion ranks as the largest three-session valuation increase in U.S. market history.
Senior editor-at-large for Fortune warned that Nvidia's trillion-dollar status may be short-lived, comparing its high P/E ratio to Tesla's brief tenure in the club.
One year later — open only if you can handle spoilers
Nvidia's market cap would not only hold above $1 trillion but would more than double over the next two years as AI demand continued to explode. The company became a permanent member of the trillion-dollar club, eventually surpassing $3 trillion in 2024 as its data center revenue grew by triple digits per quarter.