Nvidia’s market value reached a milestone, surpassing $2 trillion on Friday, buoyed by a positive report from Dell Technologies, driving Wall Street’s enthusiasm for artificial intelligence (AI) technologies.
Dell’s optimistic forecast, particularly citing a surge in orders for AI-optimized servers utilizing Nvidia’s processors, spurred Nvidia‘s stock to rise by 4%. Concurrently, Dell’s shares experienced a remarkable upswing, peaking at a 38% increase to a new record high, ultimately closing with a 32% gain.
This surge propelled Nvidia to a market capitalization of $2.06 trillion, solidifying its position as the third most valuable company on Wall Street, trailing only behind Microsoft and Apple. Other companies in the AI chip market, such as Super Micro Computer, also saw increases in their stock prices.
The broader chip sector saw notable gains, with Broadcom, Marvell Technology, and Advanced Micro Devices all reaching record highs. The PHLX chip index surged by 4.3%, marking a new peak and contributing to its 2024 gain of 18%.
Nvidia’s dominance in the high-end AI chip market, capturing around 80% of it, has attracted major clients like OpenAI, Microsoft, Alphabet, and Meta Platforms.
This demand has led to tight supplies of Nvidia’s components, making it Wall Street’s most traded stock by value, surpassing Tesla. Trading volumes for Nvidia averaged $36 billion over the past 30 sessions.
Earlier in February, Nvidia made headlines when it gained $277 billion in market value in a single session after forecasting a significant increase in quarterly revenue. The company’s stock has continued its upward trajectory, rising by 66% in 2024 after more than tripling in value the previous year.
Despite its impressive valuation, Nvidia’s market cap still lags slightly behind that of Saudi Aramco, which stands at $2.045 trillion. However, the majority of Saudi Aramco’s shares are closely held by the Saudi Arabian government, with less than 2% available for trading by investors.
