[Stock. Photo Credit to Pixabay]

NVIDIA has reached a new peak of $2 trillion this week.

NVIDIA Corporation is an American semiconductor company and a leading global manufacturer of high-end graphics processing units.

Founded in 1993 by Jensen Huang, NVIDIA has become a global powerhouse, commanding over 80% of the GPU semiconductor chip market share as of 2023.

The artificial intelligence (AI) boom around the globe has remarkably impacted NVIDIA’s profit.

NVIDIA’s GPUs play a crucial role in operating and training AI systems, with the ability to handle massive data crunching swiftly.

As more AI products, including the likes of Chat GPT, have triggered a surge in chip demands from major Information Technology (IT) companies.

This phenomenon led NVIDIA to earn a lot of profit, even reaching the record of $2 trillion in a short period of time.

CEO Jensen Huang’s net worth has seen a staggering increase of $47.7 billion in just one year.

Notably, NVIDIA has now surpassed Google’s parent group, Alphabet.

This achievement solidifies its position as the third most valuable company in the US market.

The only two companies ahead of NVIDIA in market capitalization are tech giants Microsoft and Apple.

NVIDIA’s big success has caused ripples in stock markets around the world.

For example, Japan’s main stock market index, the Nikkei, climbed 2.19% to close at 39,098.68 in Tokyo, reaching a 34-year high.

Both Europe’s STOXX 600 and Wall Street’s blue-chip Dow Jones and S&P 500 indices have also achieved unprecedented highs.

The influence of NVIDIA, along with other AI-related businesses, has reshaped the stock market landscape.

The “Mag 7,” comprising NVIDIA, Amazon, Alphabet, Microsoft, Apple, Meta, and Tesla, collectively boasts a market cap exceeding $13 trillion.

These companies share the similarity of being interested in AI to varying degrees.

However, concerns and worries may arise as artificial technology companies dominate the stock market.

Some may worry that only AI-related businesses will survive in the future stock market.

Neil Wilson, chief analyst at brokerage firm Finalto, says this is a bubble – “it’s the nature of markets, it’s built into them to produce these manias” – and the question is when and how it levels off.

Because the sustainability of the impact of artificial intelligence in the stock market is uncertain, economists and companies will have to continually monitor the subtle changes in the stock market.