Nvidia Surpasses $2 Trillion Valuation Following Dell’s AI-Boosted Report

Nvidia achieved a historic milestone as its market value crossed the $2 trillion threshold for the first time on Friday, propelled by a positive outlook from Dell Technologies that reignited the AI-driven surge on Wall Street.

Following Dell's optimistic forecast late on Thursday, which highlighted a significant uptick in orders for its AI-optimized servers using Nvidia's processors, Nvidia's stock surged by 4%. Dell, a major distributor of high-end servers incorporating Nvidia's technology, witnessed its shares soaring by as much as 38%, ultimately settling with a 32% gain.

This rally elevated Nvidia to a market capitalization of $2.06 trillion, securing its position as the third most valuable company on Wall Street, trailing behind Microsoft at $3.09 trillion and Apple at $2.77 trillion.

Super Micro Computer, another firm leveraging Nvidia's chips in its servers, experienced a 4.5% increase. Furthermore, other chipmakers immersed in the AI sector, including Broadcom and Marvell Technology, saw their stocks climb by approximately 8%, while Advanced Micro Devices recorded a gain of over 5%.

The PHLX chip index surged by 4.3%, reaching its own record high and contributing to a year-to-date gain of 18%. Nvidia holds a dominant 80% share in the high-end AI chip market, supplying crucial components to industry giants such as Microsoft, Alphabet, Meta Platforms, and OpenAI, the creator of ChatGPT.

Nvidia has recently become the most traded stock on Wall Street in terms of daily value, outpacing Tesla. Investors have exchanged an average of $36 billion worth of Nvidia's stock over the past 30 sessions, compared to Tesla's $21 billion a day. On Friday alone, trading in Nvidia reached a staggering $38 billion.

On February 23, the California-based company witnessed an unprecedented single-session increase of $277 billion in stock market value, setting a Wall Street record, following its projection of a nearly threefold surge in quarterly revenue.

In 2024, Nvidia's stock has already risen by 66%, building on its remarkable performance from the previous year when it more than tripled.

Last month, Nvidia surpassed the market values of both Amazon and Alphabet. Notably, this is the second occasion in a week that Nvidia's market value has exceeded $2 trillion, showcasing the sustained momentum in its market performance.