Nvidia (NVDA.O) achieved a historic milestone as its stock market value surpassed $2 trillion for the first time on Friday. This surge was triggered by a positive report from Dell Technologies (DELL.N), reinvigorating the AI-driven momentum on Wall Street.
Following Dell’s optimistic forecast on Thursday, citing a substantial increase in orders for its AI-optimized servers, Nvidia’s stock rose by 4%. Dell’s own shares experienced a remarkable ascent, reaching a record high with a peak of 38% before settling at a 32% gain by the end of the session.
After Friday’s surge, Nvidia’s market capitalization reached $2.06 trillion, securing its position as the third most valuable company on Wall Street. It trails behind Microsoft and Apple, with market capitalizations of $3.09 trillion and $2.77 trillion, respectively.
Super Micro Computer (SMCI.O), a company that also markets servers featuring Nvidia’s chips, experienced a 4.5% surge. Additionally, other chip manufacturers linked to artificial intelligence achieved unprecedented highs: Broadcom (AVGO.O) and Marvell Technology (MRVL.O) both saw approximately 8% increases, while Advanced Micro Devices (AMD.O) rose by over 5%.
The PHLX chip index (.SOX) achieved a record high, surging by 4.3% and contributing to its 2024 increase of 18%.
Nvidia dominates approximately 80% of the high-end AI chip market, attracting customers such as OpenAI (creator of ChatGPT), Microsoft (MSFT.O), Alphabet (GOOGL.O), and Meta Platforms (META.O). These tech giants are actively securing limited supplies of Nvidia’s components to stay competitive in the rapidly growing generative AI sector.
Nvidia has now taken the lead as the most traded stock by value on Wall Street, surpassing Tesla (TSLA.O). In the last 30 sessions, investors traded an average of $36 billion worth of Nvidia’s stock each day, a notable increase from Tesla’s daily average of $21 billion.
Friday’s trading in Nvidia amounted to $38 billion in shares. On February 23, the California-based company achieved a remarkable Wall Street record by gaining $277 billion in stock market value in a single session. This surge followed Nvidia’s forecast, predicting a roughly threefold increase in quarterly revenue.
In 2024, the company’s stock has risen by 66%, building upon its extraordinary performance of more than tripling in value the previous year. In the last month, Nvidia’s market value surpassed that of Amazon (AMZN.O) and Alphabet.
According to Reuters.
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