Santa Clara, California – Nvidia, a prominent semiconductor company, saw its stock market value surpass the $2 trillion milestone for the first time recently, following a positive report from Dell Technologies that fueled a surge in the AI sector on Wall Street.
After Dell’s optimistic forecast on Thursday, highlighting a spike in orders for AI-optimized servers equipped with Nvidia’s processors, Nvidia’s stock rose by 4%. This increase pushed the company’s market capitalization to $2.06 trillion, making it the third most valuable company on Wall Street, trailing behind tech giants Microsoft and Apple.
Dell, known for its high-end servers incorporating Nvidia’s chips, experienced a significant 32% gain in its shares, reaching a record high as investors responded positively to the company’s upbeat outlook.
The AI industry’s positive momentum wasn’t limited to Nvidia and Dell alone. Super Micro Computer, another firm using Nvidia’s chips in its servers, also saw a 4.5% increase in its stock value. Additionally, other chipmakers exposed to the AI market, such as Broadcom and Marvell Technology, witnessed record highs in their stock prices, with the PHLX chip index climbing by 4.3% to its own peak.
Nvidia’s dominance in the high-end AI chip market, with big clients like Microsoft and Alphabet, has solidified its position as a key player in the industry. The company’s recent growth and market performance have garnered attention, with Nvidia becoming the most traded stock on Wall Street by value, overtaking Tesla.
In February, Nvidia made headlines by adding $277 billion in stock market value in a single session after forecasting a substantial surge in quarterly revenue. This remarkable performance has contributed to a 66% increase in Nvidia’s stock price in 2024, following a more than tripling of its value the previous year.
Despite such significant growth, Nvidia faced competition from Saudi Aramco, which boasts a market capitalization of $2.045 trillion. However, a large portion of Saudi Aramco’s shares is controlled by the Saudi Arabian government, limiting the availability of its shares for public trading.
The tech sector’s ongoing advancements in AI technology continue to drive market enthusiasm, with Nvidia at the forefront of innovation, capturing the attention of investors worldwide.