NVIDIA’s Valuation Reaches $2 Trillion As Dell Ignites AI Rally

(CTN News) – The stock market value of Nvidia, the world’s largest chipmaker, closed above $2 trillion for the first time on Friday following an upbeat report from Dell Technologies that reignited Wall Street’s AI-fueled rally.

Nvidia’s stock increased by 4% following Dell’s upbeat forecast late on Thursday, indicating a surge in orders for its AI-optimized servers made with Nvidia’s processors.

During the session, Dell’s shares soared by as much as 38% before closing up 32%.

The rally on Friday increased Nvidia’s market capitalization to $2.06 trillion, making it Wall Street’s third most valuable company, behind Microsoft and Apple, which have market capitalizations of $3.09 trillion and $2.77 trillion, respectively.

The stock of Super Micro Computer, another company that manufactures servers based on Nvidia’s chip, increased by 4.5%.

There were also record highs for Broadcom and Marvell Technology, while Advanced Micro Devices rose over 5%.

The PHLX chip index rose 4.3% to its own record high, bringing the total gain since 2024 to 18%.

The company controls approximately 80% of the high-end AI chip market, with customers including ChatGPT creator OpenAI, Microsoft, Alphabet, and Meta Platforms buying up its components in order to compete in the fast-emerging sector of generative artificial intelligence.

In recent years, the company has replaced Tesla as the most traded stock on Wall Street by day-to-day value. In the past 30 sessions, investors exchanged $36 billion of Nvidia’s stock, compared to $21 billion for Tesla.

On Friday, Nvidia’s shares traded for $38 billion.

After forecasting a roughly threefold increase in quarterly revenue, the Santa Clara, California-based company gained $277 billion in stock market value in just one session.

After more than trebling last year, Nvidia’s stock has now risen 66% in 2024. The company’s stock market value surpassed both Amazon and Alphabet last month.

The stock market value of Nvidia briefly surpassed $2 trillion a week ago before declining by the end of the session.

In accordance with LSEG data, Saudi Aramco has a market capitalization of $2.045 trillion, with over 90 percent of its shares held by the government of Saudi Arabia, and less than 2 percent of its shares available for trading by investors.

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