In an accomplishment, for the technology industry Nvidias market value surpassed $2 trillion marking a moment for the company.
This achievement was reached Friday driven by projections from Dell Technologies highlighting the continued excitement around AI technology on Wall Street.
The increase in Nvidias market worth was triggered by a 4% surge in its stocks following forecasts from Dell. Dell, recognized for its servers featuring Nvidia processors noted a rise in orders for its AI optimized servers towards the end of Thursday.
This announcement not benefited Nvidia. Also boosted Dells shares significantly soaring by 38% to an all time high before settling at a 32% increase at the end of the trading day.
This domino effect spread throughout the tech industry with Super Micro Computer. Another server vendor using Nvidia chips. Experiencing a 4.5% rise in its stock value.
The enthusiasm also spilled over to chip manufacturers heavily involved in AI technologies like Broadcom and Marvell Technology each climbing around 8% and Advanced Micro Devices witnessing an increase of, over 5%.The impact was clearly seen in how the PHLX chip index performed, climbing 4.3% to hit a record high showing an 18% increase, for the year 2024.
Nvidia, dominating 80% of the top tier AI chip market finds itself at the heart of the growing AI industry. It serves names like OpenAI, Microsoft, Alphabet and Meta Platforms who’re all keen on Nvidias components to boost their competitive edge in AI.
Nvidias presence on Wall Street has strengthened as it became the traded stock in terms of value surpassing Tesla. In the 30 trading days Nvidias stock saw a volume of $36 billion compared to Teslas $21 billion. On Friday trading in Nvidia shares reached $38 billion.
The remarkable increase in Nvidias market value was exceptional when it added $277 billion in a session on February 23 setting a record on Wall Street due, to its projection of nearly tripling its quarterly revenue.
Nvidias stock has had a climb by rising 66% in 2024 after tripling its value from the year.Nvidias market value exceeded that of tech players such, as Amazon and Alphabet during its growth phase.
Before reaching the $2 trillion mark Nvidias market capitalization briefly hit this milestone before falling by the end of the trading session. This achievement puts Nvidia in the league of companies like Saudi Aramco, which holds a market cap of $2.045 trillion although a large part is owned by the government leaving less than 2% available, for public trading according to LSEG data.