Nvidia’s meteoric rise in 2024, with a 66% increase in its stock value, follows a remarkable performance in the preceding year, where its value more than tripled.
Nvidia, the renowned graphics and AI chip manufacturer, achieved a significant milestone on Friday as its stock market value soared beyond $2 trillion for the first time. This historic feat was propelled by a buoyant report from Dell Technologies, igniting a robust rally on Wall Street driven by the promise of artificial intelligence (AI).
Following Dell’s promising outlook earlier this week, Nvidia’s shares surged by 4%. Dell, known for its high-end servers incorporating Nvidia’s processors, provided an optimistic forecast, citing a notable increase in orders for its AI-optimised servers. The market responded fervently, with Dell’s own shares skyrocketing by as much as 38% to reach a record high, ultimately closing the session with a remarkable 32% gain.
The surge in Nvidia’s market capitalisation to $2.06 trillion positions the company as the third most valuable entity on Wall Street, trailing behind industry giants Microsoft and Apple, valued at $3.09 trillion and $2.77 trillion, respectively.
The ripple effect of this milestone was felt across the tech sector, particularly among chipmakers with exposure to AI technologies. Super Micro Computer, a company also leveraging Nvidia’s chips in its servers, witnessed a notable 4.5% surge in its stock value.
Moreover, other prominent chipmakers experienced record highs, with Broadcom and Marvell Technology each witnessing an approximate 8% increase, while Advanced Micro Devices climbed over 5%. The PHLX chip index surged by 4.3% to establish its own record high, bolstering its 2024 gain to an impressive 18%.
Nvidia’s dominance in the high-end AI chip market, with a commanding 80% share, underscores its pivotal role in driving innovation across various industries. Notable clients such as OpenAI, Microsoft, Alphabet, and Meta Platforms have been swiftly acquiring Nvidia’s components to stay competitive in the burgeoning generative AI sector.
The surge in Nvidia’s market activity has solidified its position as Wall Street’s most traded stock by value, surpassing the likes of Tesla. Investors have exchanged an average of $36 billion worth of Nvidia’s stock over the past 30 sessions, compared to $21 billion for Tesla. On Friday alone, trading in Nvidia reached a staggering $38 billion worth of shares.
Nvidia’s meteoric rise in 2024, with a 66% increase in its stock value, follows a remarkable performance in the preceding year, where its value more than tripled. Last month, Nvidia’s market capitalisation surpassed tech behemoths Amazon and Alphabet, reflecting its relentless growth trajectory.
