Nvidia Corp. is closing in on a $1 trillion market capitalisation after its shares surged double digits in a single day over bumper quarterly results.

Shares of the California-based company saw the biggest one-day jump in history, closing 24.37% higher at $379.80 per share on May 25. The company has reached a market cap of $940 billion, rising nearly $184 billion in a single day.

The company may soon enter the trillion-dollar club and would be the ninth company to ever reach such a valuation. Currently, only Apple, Saudi Aramco, Microsoft, Alphabet, and Amazon are members of the club, with Tesla and Meta falling off early last year.

The market capitalisation of the semiconductor company has increased by $586 billion as a result of the shares rising more than 110% this year.

The first-quarter report from Nvidia showed a revenue gain of 19% from quarter to quarter, well-exceeding forecasts. Sales increased by 19% to $7.2 billion, and Nvidia’s profit increased by 26% to $2 billion.

Nvidia is a leading manufacturer of cutting-edge chips used in almost every computing field, especially in the training of AI services.

The pandemic saw a boost in cloud use, a boom in gaming, and a surge in crypto enthusiasts using the company’s chips to mine cryptocurrency.

In the early years, the company focused on graphics processing units (GPUs) used in gaming but has pivoted to the data centre market over the last few years.

GPUs are used in one of the most buzzing fields, AI. The large computers that process data and power generative AI run on these powerful chips. For instance, thousands of Nvidia GPUs were utilised to construct OpenAI’s ChatGPT. Nearly 80% of GPU production, according to analysts, is done by Nvidia.

The company’s main competitors include Advanced Micro Devices (AMD), Intel and companies like Amazon, Alphabet and Meta that make these chips in-house.

Nvidia’s CEO, Jensen Huang, said in a statement that Nvidia is increasing the supply of its entire suite of data centre products to meet “surging demand” for them. Huang also revealed that the firm had commenced full-scale production of its latest AI chips as early as August last year.