Written by Noel Landewicz
(Reuters) – Nvidia shares closed above $2 trillion for the first time on Friday, after an upbeat report from Dell Technologies reignited Wall Street’s AI-powered bull market.
Nvidia stock rose 4% after Dell, which sells high-end servers powered by Nvidia processors, issued a positive outlook late Thursday pointing to a surge in orders for its AI-optimized servers.
Dell stock soared 38% to an all-time high and closed 32% higher.
Friday’s share price increase gave Nvidia a market capitalization of $2.06 trillion, making it the third most valuable company on Wall Street, behind Microsoft and Apple’s $3.09 trillion and $2.77 trillion, respectively. .
Super Micro Computer, another company that sells servers powered by Nvidia chips, also jumped 4.5%.
Other chipmakers exposed to AI rose to record highs, with Broadcom and Marvell Technologies up about 8% each and Advanced Micro Devices up more than 5%.
The PHLX Chip Index rose 4.3% to its own all-time high, increasing its 2024 gain to 18%.
Nvidia controls about 80% of the high-end AI chip market, and customers like OpenAI, creator of ChatGPT, Microsoft, Alphabet, and Meta Platforms need a tight component to compete in the rapidly emerging generative AI space. We are rushing to supply.
The company recently replaced Tesla as Wall Street’s most traded stock by value. Investors have traded an average of $36 billion worth of Nvidia stock over the past 30 sessions, compared to $21 billion worth of Tesla stock per day.
Nvidia stock traded worth $38 billion on Friday.
On February 23, the Santa Clara, California-based company increased its stock market value by $277 billion in just one session, a Wall Street record, after predicting that quarterly sales would nearly triple. Ta.
Nvidia’s stock price has more than tripled in the last year and is on track to rise 66% in 2024. Last month, the company’s stock market value overtook Amazon and Alphabet.
A week ago, Nvidia’s stock price exceeded $2 trillion for the first time, but fell by the close of trading.
Saudi Aramco has a market capitalization of $2.045 trillion, but more than 90% of it is closely held by the Saudi government, with less than 2% of the shares available for trading by investors, according to LSEG data.
(Reporting by Noel Randewich; Editing by Kirsten Donovan and Will Dunham)
