On Friday, Nvidia’s market value surpassed $2 trillion for the first time, driven by positive news from Dell Technologies which bolstered Wall Street’s AI-focused momentum.
Following Dell’s optimistic forecast late on Thursday, citing a surge in orders for its AI-optimized servers using Nvidia’s processors, Nvidia’s stock surged by 4%. Dell’s shares experienced a remarkable increase, peaking at 38% before settling with a 32% gain.
This rally propelled Nvidia to a market capitalization of $2.06 trillion, securing its position as the third most valuable company on Wall Street, trailing Microsoft at $3.09 trillion and Apple at $2.77 trillion.
Other companies in the AI sector also saw gains, with Super Micro Computer, known for servers incorporating Nvidia’s chips, rising by 4.5%. Chipmakers with exposure to AI, such as Broadcom and Marvell Technology, soared to record highs, with gains of about 8% each, while Advanced Micro Devices climbed over 5%.
The PHLX chip index reached a new record high, marking an 18% gain for 2024.
Nvidia dominates about 80% of the high-end AI chip market, supplying components to key players like OpenAI, Microsoft, Alphabet, and Meta Platforms for their generative AI endeavors.
Recent trends have made Nvidia the most traded stock by value, overtaking Tesla. Over the past 30 sessions, Nvidia’s stock exchanged hands at an average of $36 billion daily, compared to Tesla’s $21 billion.
On February 23, Nvidia’s market value surged by $277 billion in a single session, setting a Wall Street record, following its projection of a threefold increase in quarterly revenue.
In 2024 alone, Nvidia’s stock has soared by 66%, building on last year’s more than tripling in value. Last month, it surpassed Amazon and Alphabet in market capitalization.
While Nvidia briefly exceeded $2 trillion in market value a week prior, it surpassed Saudi Aramco, which holds a $2.045 trillion market capitalization, although a significant portion of its shares are closely held by the Saudi government, with only a small fraction available for public trading.
