Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang has long claimed that the world’s data centers will need a complete overhaul to handle the demands of generative artificial intelligence (AI).

Broadcom Inc (NASDAQ:AVGO) shares have jumped more than 20% since it reported an AI-driven sales increase, highlighting the increasing importance of high-speed networking in data centers. It is another contender for a $1 trillion valuation.

Also Read: Nvidia Becomes World’s Most Valuable Company, Surpasses Microsoft and Apple: Report

Meanwhile, software maker Oracle Corp (NYSE:ORCL) soared 17% following news of a deal to train Microsoft Corp (NASDAQ:MSFT) OpenAI’s large language models on its cloud infrastructure.

Even Hewlett Packard Enterprise Co (NYSE:HPE), previously lagging in AI server demand, saw a 24% stock increase post-earnings.

Nvidia remains the biggest winner, with most of its sales coming from complete servers networked using its proprietary technologies.

Nvidia places significant importance on nurturing startups, with an extensive program that spans India and globally.

Wedbush analyst Dan Ives predicts Nvidia to be the first to reach a $4 trillion market cap, as its GPU chips are crucial for AI development.

Nvidia stock gained close to 204% in the last 12 months. Investors can gain exposure to the stock via iShares Russell 1000 Growth ETF (NYSE:IWF) and Vanguard Information Tech ETF (NYSE:VGT).

Price Action: NVDA shares traded lower by 1.32% at $129.05 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock