Nvidia, a leading manufacturer of computer components for gaming and artificial intelligence (AI), has made history by becoming the first semiconductor company to hit a $1 trillion market cap. The impressive milestone was achieved thanks to the continued growth of the AI industry, which relies heavily on Nvidia’s technology.

According to a report from Markets Insider, Nvidia’s stock price rallied due to the AI boom, reaching the $1 trillion market cap mark. “We believe AI is the most important technology development in our lifetime,” said Jensen Huang, Nvidia’s CEO. “Nvidia is well positioned to lead the industry forward in this new era.”

Despite the milestone, CNBC reported that Nvidia gave back some of its gains, dipping below the $1 trillion market cap mark shortly after crossing it. However, the company’s continued growth and strong position in the AI market make it a promising investment for the future.

As CNN reported, the growth of AI has helped propel Nvidia to join the $1 trillion club, with the company’s technology being used in everything from autonomous vehicles to data centers. “Nvidia is uniquely positioned to benefit from the continued growth of AI and the ongoing digital transition,” said Dan Ives, an analyst at Wedbush Securities.

Overall, Nvidia’s continued success and growth in the AI market have solidified its position as a leader in the semiconductor industry, with investors continuing to show confidence in the company’s future prospects.