May 30 Reuters Nvidia Corp on Tuesday became the first chipmaker to join the trilliondollar club, as the company bets on a surge in demand for its AI chips that power chatbot sensation ChatGPT and many other applications.

The gaming and AI chip company39;s shares rose 4.2.

Taiwan Semiconductor Manufacturing Co Ltd is the next largest chipmaker globally, valued at about 535 billion.

Meta Platforms Inc, valued at about 670 billion as of last close, clinched the trilliondollar market capitalization milestone in 2021, while Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com Inc are the other U.S. companies that are part of the club.

Wall Street analysts called Nvidia39;s forecast unfathomable and cosmological, hiking their price targets in droves. The highest price target valued the company at about 1.6 trillion, on par with Googleparent Alphabet.

Given the valuation is well above the longterm average, there will be significant pressure to deliver high growth on a consistent basis … there could be volatility in its share price to come, Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.

AI took center stage after Nvidia stunned investors with a revenue forecast last week that surpassed analysts39; expectations by more than 50.

Nvidia is the poster child for AI at the moment, said Thomas Hayes, chairman at Great Hill Capital. The market is coming to terms with if this AI trend is real.

Nvidia39;s shares rose about 25 last week sparking…