After receiving an optimistic report from Dell Technologies, Wall Street experienced a surge primarily driven by advancements in artificial intelligence (AI), leading to Nvidia’s stock market value surpassing $2 trillion for the first time on Friday.
Nvidia’s shares surged by 4% in response to Dell’s positive forecast, which highlighted a significant increase in orders for AI-optimized servers utilizing Nvidia’s processors. Investor confidence towards Nvidia was notably boosted by Dell’s encouraging outlook.
Concurrently, Dell’s shares witnessed an extraordinary ascent, soaring as much as 38% to achieve a record high during the session, ultimately closing with an impressive 32% gain.
Also Read: Nvidia CEO Predicts AI Could Surpass Humans in Five Years
With a market capitalization reaching $2.06 trillion, Nvidia became the third most valuable company globally on Friday. This positions the chipmaker closely behind Microsoft, valued at $3.09 trillion, and Apple, with a market cap of $2.77 trillion.
Super Micro Computer, another company incorporating Nvidia chips into its servers, also experienced a favorable gain of 4.5% during the same period. Additionally, other chipmakers, including Broadcom and Marvell Technology, saw significant increases of about 8%. Meanwhile, one of Nvidia’s major competitors, Advanced Micro Devices (AMD), reported a 5% increase in its stock value.
The PHLX chip index mirrored this bullish trend, rallying by 4.3% to achieve its own record high, contributing to its robust 18% gain for the year 2024.
Nvidia is anticipated to maintain its lead over competitors in the foreseeable future, commanding approximately 80% of the high-end AI chip market. With an extensive clientele that includes prominent entities like OpenAI, Microsoft, Alphabet, and Meta Platforms, Nvidia remains a key player in the generative AI sector, supplying components to enhance the competitive edge of these industry leaders.
