Nvidia briefly reached a market capitalization of $1 trillion due to high demand for artificial intelligence (AI) technology, making it one of only four companies in the United States to achieve this milestone.

The company's shares hit a daily high of over $418 before closing just over $401. Nvidia has seen a year-to-date gain of over 180% due to the increasing demand for graphics processing units (GPUs) that power generative AI tools.

While other tech companies and chip manufacturers are also working on AI-ready chips, some analysts suggest there is still room for Nvidia to grow in the AI market.