Nvidia, the chipmaker, has joined the elite $2 trillion club after its market value soared on Friday, following reports of impressive earnings that fueled Wall Street’s appetite for artificial intelligence.
After announcing a 769% yearly increase in its fourth-quarter profits and a 580% surge in its annual profits – far exceeding the forecasts of analysts – the company ended up adding a record $273 billion to its market cap on Thursday, the most significant single-day jump for any company, as noted by S&P Dow Jones Indices’ senior index analyst, Howard Silverblatt.
Nvidia now ranks among the few companies that have achieved a $2 trillion valuation, a list that includes Apple and Microsoft. Earlier this month, Nvidia outpaced Amazon and Alphabet in market value, thereby securing its position as the third-largest company on Wall Street. The company reached a $1 trillion market cap in 2023, approximately 24 years after its initial public offering.
The impressive increase in Nvidia’s market value over the past year resulted from Wall Street’s growing enthusiasm for artificial intelligence, which helped to sustain an aggressive bull market. The wave of Nvidia’s extraordinary earnings results on Thursday contributed to a widespread rally, in turn propelling the S&P 500 and Dow Jones Industrial Average indexes to close at record highs.
Nvidia has become a symbol of Artificial Intelligence (AI) on Wall Street, primarily due to its vital role in the rapidly growing AI sector. The American chipmaker is unrivaled when it comes to producing processors that drive AI systems. These systems include generative AI – a breakthrough technology that can generate text, images, and other forms of media. This capability has made Nvidia an indispensable player in the evolution of AI technology.
