Nvidia’s Mcap hits $2 trillion as AI frenzy grips Wall St, shares at record high
Nvidia hit $2 trillion in market valuation for the first time on Friday, February 23, riding on a relentless demand for its chips amid Wall Street’s current tech rally fueled by artificial intelligence (AI)
The $2 trillion milestone followed the chip maker’s blockbuster quarterly report and robust revenue forecast that drove up its market value by $277 billion on Thursday — the largest single-day gain in history, eclipsing the $197-billion gain made by Facebook-parent Meta.
Nvidia’s rapid ascent in the past year has led analysts to draw parallels to the picks and shovels providers during the gold rush of 1800s as Nvidia’s chips are used by almost all generative AI players from chatGPT-maker OpenAI to Google, according to news agency Reuters.
This has helped the chipmaking giant vault from $1 trillion to $2 trillion market value in around eight months – the fastest among US companies and in less than half the time it took tech giants Apple and Microsoft.
Nvidia’s shares were last trading up about three per cent, on the New York Stock Exchange (NYSE). They had risen as much as 4.9 per cent to a record high $823.9 earlier in the session. The shares have surged nearly 60 per cent this year, after more than tripling in value in 2023.
The chip designer’s 2024 share surge has been crucial to the S&P 500’s gains, contributing to more than a quarter of the stock index’s rise this year.
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Published: 23 Feb 2024, 09:02 PM IST