April 24, 2024

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Nvidia closed at a $2 trillion valuation as Dell fueled the rise of artificial intelligence

Nvidia closed at a $2 trillion valuation as Dell fueled the rise of artificial intelligence

Written by Noel Randewich

(Reuters) – Nvidia's market value closed above $2 trillion for the first time on Friday after an upbeat report from Dell Technologies reignited an artificial intelligence-fueled rally on Wall Street.

Nvidia stock rose 4% after Dell, which sells high-end servers made with Nvidia processors, gave an upbeat forecast late Thursday, citing an increase in orders for its AI-optimized servers.

Dell shares rose as much as 38% to a record high before ending the session with a 32% gain.

Friday's rise puts Nvidia's market cap at $2.06 trillion, making it the third-most valuable company on Wall Street after Microsoft and Apple, at $3.09 trillion and $2.77 trillion, respectively.

Super Micro Computer, another company that sells servers made with Nvidia chips, jumped 4.5%.

Shares of other chipmakers exposed to artificial intelligence rose to record levels, with shares of Broadcom and Marvell Technology each rising about 8%, while shares of Advanced Micro Devices rose more than 5%.

The PHLX chip index rose 4.3% to a record high, taking its 2024 gains to 18%.

Nvidia controls about 80% of the edge AI chip market, with customers including ChatGPT creator OpenAI, Microsoft, Alphabet and Meta Platforms sourcing limited supplies of its components to compete in the fast-growing generative AI sector.

The company recently became the most traded stock on Wall Street by value, day by day, replacing Tesla. Investors have traded an average of $36 billion worth of Nvidia stock over the past 30 sessions, compared to $21 billion a day for Tesla.

On Friday, Nvidia's trading value reached $38 billion.

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On February 23, the Santa Clara, California-based company added $277 billion to its stock market capitalization in just one session, a Wall Street record, after it forecast a nearly three-fold increase in quarterly revenue.

Nvidia stock is now up 66% in 2024 after more than tripling last year. Last month, its market value exceeded that of Amazon and Alphabet.

A week ago, Nvidia's stock market value rose above $2 trillion for the first time before falling at the end of the session.

Saudi Aramco has a market capitalization of $2.045 trillion, although more than 90% of it is closely owned by the government of Saudi Arabia and less than 2% of its shares are available for trading by investors, according to LSEG data.

(Reporting by Noel Randewich; Editing by Kirsten Donovan and Will Dunham)