SANTA CLARA (dpa-AFX) - Nvidia Corp. (NVDA) achieved a historic milestone after the chip giant's market capitalization crossed $5 trillion on Wednesday morning, driven by the company's investments in artificial intelligence.
NVDA is currently trading at $208.71, up $7.68, or 3.82%, on the Nasdaq. The company had crossed the $4 trillion mark only four months ago and has been on a rally since CEO Jensen Huang secured new supply deals with companies including Nokia Oyj, Samsung Electronics Co., and Hyundai Motor Group.
In its most recent earnings report, released on August 27, Nvidia posted a rise in second-quarter profit that also exceeded Street estimates. The company's bottom line totaled $26.422 billion, or $1.08 per share, up from $16.599 billion, or $0.67 per share, last year.
Adjusted earnings were $25.783 billion or $1.05 per share for the period. Analysts expected earnings of $1.01 per share. The company's revenue for the period rose 55.6% to $46.743 billion from $30.040 billion last year.
On Tuesday, Nokia announced that Nvidia will purchase a $1 billion stake in the Finnish networking company. Nvidia also said it is working with Nokia to help develop next-generation 6G cellular technology.
As part of the agreement, Nokia will issue more than 166 million new shares, with the money raised going toward funding its AI projects and other business needs.
Other announcements include a deal to work with Uber (UBER) to build a fleet of self-driving cars and an agreement to sell 1,000 GPUs to drugmaker Eli Lilly (LLY).
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