Following an encouraging report from Dell Technologies, Wall Street saw an AI-driven rally, pushing Nvidia’s stock market value beyond $2 trillion for the first time on Friday.
An Encouraging Report
Nvidia’s stock increased by 4% on Dell’s upbeat estimate, which highlighted a significant rise in orders for its AI-optimized servers that use Nvidia chips. The confidence given by Dell’s vision significantly boosted investor sentiment towards Nvidia.
Simultaneously, Dell’s stock skyrocketed, rising as much as 38% to a record high throughout the session, before closing with an amazing 32% gain.
Nvidia became the world’s third most valuable business on Friday, with a market valuation of $2.06 trillion.
Market of $2.77 Trillion
This places the chipmaker squarely behind Microsoft, which is worth $3.09 trillion, and Apple, which has a market capitalization of $2.77 trillion.
Super Micro Computer, which sells servers based on Nvidia chips, saw a 4.5% increase during the same period. Other chipmakers have experienced record profits as a result of the AI rise.
This includes Broadcom and Marvell Technology, both of which are up roughly 8%. Meanwhile, Advanced Micro Devices (AMD), one of Nvidia’s main rivals, posted a 5% gain.
The PHLX chip index continued this optimistic trend, surging 4.3% to set its own record high, contributing to a solid 18% gain in 2024.
However, Nvidia is anticipated to remain far ahead of its competitors for the foreseeable future. Nvidia, which controls around 80% of the high-end AI processor market, has a diverse clientele that includes notable entities such as OpenAI, the originator of ChatGPT, as well as IT behemoths Microsoft, Alphabet, and Meta Platforms.
These industry leaders have been actively acquiring Nvidia components to get a competitive advantage in the fast developing generative AI area.
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