Nvidia hits $2 trillion
In a groundbreaking achievement, Nvidia Corp. is poised to become the inaugural semiconductor firm to achieve a remarkable $2 trillion valuation, solidifying its status as the primary beneficiary of the surge in artificial intelligence-related stocks over the past year. The chipmaker’s shares witnessed a surge of up to 4.9% on Friday, building on its previous closing valuation of $1.96 trillion. This surge further cements Nvidia’s standing as the world’s fourth-most valuable company, experiencing a remarkable 65% rally since the beginning of the year, placing its market capitalization only behind industry giants Microsoft Corp., Apple Inc., and Saudi Aramco.
In a noteworthy contrast, while it took Apple and Microsoft more than two years to transition from a $1 trillion to a $2 trillion valuation, Nvidia is set to accomplish this feat in less than a year, riding the wave of Wall Street’s fervor for artificial intelligence. The company’s shares surged following the announcement of stellar results, reaffirming Wall Street’s confidence in the potential of Nvidia’s artificial intelligence technologies. The chipmaker’s guidance, surpassing expectations, is propelled by substantial AI spending from major clients, including Meta Platforms Inc. Notably, Nvidia dominates the market for graphics chips designed to handle the intricate computing tasks crucial for powering the rapidly evolving AI applications that companies are eager to develop.
