Following an encouraging report from Dell Technologies, Wall Street witnessed an AI-driven surge, propelling Nvidia’s stock market value to surpass $2 trillion for the first time on Friday.
Nvidia’s shares surged by 4% following Dell’s optimistic forecast, which highlighted a notable increase in orders for its AI-optimized servers, leveraging Nvidia’s processors. The confidence instilled by Dell’s outlook notably buoyed investor sentiment towards Nvidia.
Simultaneously, Dell’s shares experienced an extraordinary ascent, surging as much as 38% to reach a record high during the session, ultimately concluding with an impressive 32% gain.
Nvidia became the third most valuable company in the world on Friday once its market capitalization hit $2.06 trillion. This puts the chipmaker right behind Microsoft, which is valued at $3.09 trillion, and Apple with a market cap of $2.77 trillion.
Another company that sells servers made with Nvidia chips, Super Micro Computer, saw a favorable gain of 4.5% during the same time. Other chipmakers have also seen record benefits due to the AI surge. This includes Broadcom and Marvell Technology, both of which have gained about 8%. Meanwhile, one of Nvidia’s biggest rivals, Advanced Micro Devices (AMD), reported a 5% increase.
The PHLX chip index mirrored this bullish trend, rallying by 4.3% to reach its own record high, contributing to its robust 18% gain for the year 2024.
But Nvidia is expected to stay far ahead of its competition for the foreseeable future. Dominating approximately 80% of the high-end AI chip market, Nvidia boasts an extensive clientele, which includes prominent entities such as OpenAI, the creator of ChatGPT, as well as tech giants Microsoft, Alphabet, and Meta Platforms. These industry leaders have been actively acquiring Nvidia’s components to bolster their competitive edge in the rapidly evolving generative AI sector.
