"Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm."
"The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares closed at $207.04 with 24.3 billion shares outstanding, putting its market cap at $5.03 trillion. In comparison, Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund."
Nvidia reached a $5.03 trillion market cap after its shares closed at $207.04 with 24.3 billion shares outstanding. Surging demand for Nvidia's graphics processing units, repurposed from gaming to training powerful generative AI systems, drove the rapid price increase since early 2023. The company's valuation now exceeds the GDPs of India, Japan and the United Kingdom, according to the International Monetary Fund. Central bankers and the IMF warned that tech stock prices inflated by the AI boom carry growing risks and could reverse, raising bubble concerns. CEO Jensen Huang downplayed the bubble risk and said generative AI chatbots have become useful and profitable. Huang traveled to South Korea as leaders from major Pacific Rim economies gathered.
Read at ABC7 San Francisco
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