Nvidia's market value crossed the $2 trillion mark for the first time as an AI-driven surge got a boost on Wall Street. The uptick came following a positive report from Dell Technologies, a major seller of high-end servers powered by Nvidia's processors.
Dell's optimistic forecast, released late on Thursday, highlighted a spike in orders for its AI-tailored servers, propelling Nvidia's stock by 4 per cent. Dell's shares surged by up to 38 per cent, hitting an all-time high, before closing the session with a 32 per cent gain.
Friday's surge pushed Nvidia's market value to $2.06 trillion, securing its position as Wall Street's third most valuable company, trailing Microsoft at $3.09 trillion and Apple at $2.77 trillion, Reuters reported.
The company has overtaken Tesla as the most traded stock on Wall Street in terms of daily value. Over the last 30 trading sessions, investors traded an average of $36 billion worth of Nvidia's shares per day, compared to $21 billion for Tesla.
Nvidia dominates around 80 per cent of the top-tier AI chip market. Its clients, including OpenAI, Microsoft, Alphabet, and Meta Platforms, are swiftly acquiring its components to stay competitive in the rapidly growing generative AI sector.
Other chipmakers with AI exposure also soared to new highs, with Broadcom and Marvell Technology rising about 8 per cent, and Advanced Micro Devices climbing over 5 per cent.
The PHLX chip index surged 4.3 per cent, reaching its own peak and bringing its 2024 gain to 18 per cent. Super Micro Computer, another seller of servers with Nvidia's chips, saw a 4.5 per cent increase.
Nvidia's stock has surged by 66 per cent in 2024, following a remarkable triple in value last year. Last month, its market value surpassed that of Amazon and Alphabet. Just a week ago, Nvidia briefly exceeded the $2 trillion mark for the first time before receding by the session's end.
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