Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Nvidia closes with $2 trillion valuation as Dell stokes AI rally

Published 03/01/2024, 02:28 PM
Updated 03/01/2024, 04:37 PM
© Reuters. FILE PHOTO: A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017.  REUTERS/Mike Blake/File Photo

By Noel Randewich

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

Nvidia (NASDAQ:NVDA)'s stock added 4% after Dell, which sells high-end servers made with Nvidia's processors, gave an upbeat forecast late on Thursday, pointing to a surge in orders for its AI-optimized servers.

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

Friday's rally put Nvidia's market capitalization at $2.06 trillion, making it Wall Street's third most valuable company behind Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), at $3.09 trillion and $2.77 trillion, respectively.

Super Micro Computer (NASDAQ:SMCI), another company that sells servers made with Nvidia's chips, jumped 4.5%.

Other chipmakers exposed to AI rallied to record highs, with Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL) Technology each up about 8%, while Advanced Micro Devices (NASDAQ:AMD) climbed over 5%.

The PHLX chip index rallied 4.3% to its own record high, lifting its 2024 gain to 18%.

Nvidia controls about 80% of the high-end AI chip market, with customers including ChatGPT creator OpenAI, Microsoft, Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) snapping up tight supplies of its components to compete in the fast-emerging generative AI sector.

The company has recently become Wall Street's most traded stock by value, day to day, replacing Tesla (NASDAQ:TSLA). Investors exchanged $36 billion worth of Nvidia's stock on average over the past 30 sessions, compared to $21 billion a day for Tesla.

Trading in Nvidia on Friday reached $38 billion worth of shares.

On Feb. 23, the Santa Clara, California-based company added $277 billion in stock market value in just one session, a Wall Street record, after it forecast a roughly threefold surge in quarterly revenue.

Nvidia's stock has now risen 66% in 2024 after more than tripling last year. Last month, its stock market value overtook Amazon (NASDAQ:AMZN) and Alphabet.

© Reuters. FILE PHOTO: A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017.  REUTERS/Mike Blake/File Photo

A week ago, Nvidia's stock market value edged above $2 trillion for the first time before receding by the end of the session.

Saudi Aramco (TADAWUL:2222) has a $2.045 trillion market capitalization, although over 90% of it is closely held by the government of Saudi Arabia and less than 2% of its shares are available for trading by investors, according to LSEG data.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.